Final answer:
The statement that higher national debt increases the cost of living is considered false as the impact on cost of living is not direct. National debt can lead to higher interest payments and deficits, but its effect on cost of living is influenced by various economic factors, and the correlation is not automatic. The correct option is b.
Step-by-step explanation:
The assertion that more national debt raises the cost of living is not straightforwardly true or false. While it's true that as national debt increases, interest payments on that debt also rise, potentially leading to larger budget deficits, this does not directly correlate to an increase in the cost of living. Cost of living is influenced by a variety of factors including inflation, economic policies, currency strength, and supply and demand.
However, if debt levels lead to inflationary pressures or higher taxes to service the debt, there could be an indirect impact on the cost of living.
Generally, the relationship between national debt and cost of living is complex. While higher debt might lead to policies that could indirectly raise the cost of living, such as inflation or reduced public spending, the causality is not absolute and can be influenced by myriad other economic factors. Therefore, the statement is considered false as the impact of national debt on cost of living is not direct or guaranteed.
Hence, Option b is correct.