Which Is an Important Problem Associated with the Public Debt

question 62

Multiple Choice

Which is an important problem associated with the public debt?

• A)Payments of interest on the debt lead to greater income equality.
• B)Interest payments on the debt tend to improve economic incentives to work and produce more unemployment.
• C)Government borrowing to finance the debt may increase the level of private investment.
• D)Payment of interest on the debt held by foreigners transfers real resources abroad

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