Future generations will have to pay interest on the current debt because______________?
Correct answer: B. budget deficits are funded with borrowed money
- A. it takes a long time to pay off debts
- B. budget deficits are funded with borrowed money
- C. the U.S government never borrows money from foreign governments
- D. none of the above
Explanation
A budget deficit occurs when government spending exceeds revenue, so the gap is financed through borrowing. The resulting debt carries interest that must be paid by future taxpayers and generations.
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