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Under what circumstances is there no burden to be borne of government debt? Country: United States

Under what circumstances is there no burden to be borne of government debt?

Country: United States

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Answer #1

Question-Under what circumstances is there no burden to be borne of government debt?

Answer - if there's an increase in tax then distortions will be a burden to future generations And redistribution will be a burden incase debt reduces national saving then investment and net foreign assets will be less which will imply a lower level of standard of living for future generations.

But If taxes will be lump sum and Ricardian equivalence holds then there is no burden.

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