Q. Which of the following statement is INCORRECT with regard to the burden of public debt of a country?
-
(A)
If the public debt is taken for productive purposes it will not be a burden on the economy.
-
(B)
If the public debt is taken for unproductive purposes, it will impose both money burden and real burden on the economy.
-
(C)
In case of Internal Debt, the direct money burden on the economy is huge as transfer of wealth happens within the community
-
(D)
In the case of External debt, the amount of repayment of interest and principal represents the direct money burden on the community
✅ Correct Answer: (C)
In case of Internal Debt, the direct money burden on the economy is huge as transfer of wealth happens within the community