Public debt is burdensome if it __________________ future output growth.
Show answer & explanation
Correct answer: A
Explanation
The correct answer is option 1 i.e. reduces
The amount of money owed by the central government is referred to as public debt or government debt.
- The government may have borrowed this sum from public financial institutions, banks, and other internal and external sources.
- There is no denying that public debt burdens the economy overall, as the following reasons illustrate:
- Detrimental impact on investment and productivity.
- To impose a burden on the next generation.
- To reduce the amount of private investment.
- To causes the nation's wealth to be depleted.