With reference to the views of classicals on public debt, which of the followings are correct:
(A) future financing gets more trouble some due to public debt
(B) public debt leads to a reduction of resources for productive private employment
(C) increasing public debt leads to currency depreciation and deflationary situations in the economy
(D) Debt financing requires funds for interest payment and amortization, hence a double burden for exchequer
(E) Public debt leads to productive activities
Choose the most appropriate answer from the options given below:
1
(A), (E) and (B) only
2
(A), (B), and (C) only
3
(E), (D) and (A) only
4
(A), (B) and (D) only