Which of the Following Statements About the National Debt Has

question 155

Multiple Choice

Which of the following statements about the national debt has the most validity?

• A)Our large national debt can bankrupt the nation.
• B)If only Americans hold the debt, then payments of interest and principal are simply transfers from some Americans to other Americans.
• C)Our large national debt can lead to subjection by the people (especially foreigners) who hold the debt.
• D)The national debt represents a burden to future generations who will have to make huge payments of interest and principal.

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Definitions:

Records

Documents, files, or electronic data that provide evidence of activities, transactions, or decisions, or can refer to vinyl discs used for playing music.

Business Cycle

The fluctuation in economic activity that an economy experiences over a period, characterized by periods of expansion and contraction.

Troughs

The low points in the economic cycle, characterized by reduced economic activity and lower levels of production and employment.

Unanticipated Inflation

A rate of inflation that is either higher or lower than expected.