If the Majority of National Debt Is Held Domestically, Economists

question 93

Multiple Choice

If the majority of national debt is held domestically, economists would consider this not to be a burden because:

• A) we owe the debt to ourselves.
• B) it is only future generations that will have to repay the debt, not us.
• C) we can easily pay for this debt out of export income.
• D) the government knows how to spend the money better than us.

---

Definitions:

Fundamental Analysts

Investment professionals who evaluate securities by analyzing various factors like economic, financial, and other qualitative and quantitative factors.

Technical Analysts

Specialists who use historical price data and chart patterns to predict future market movements and trends.

Price Movements

The fluctuations in the price of securities in the financial markets.

Representativeness Bias

A cognitive bias leading individuals to make judgments about the probability of an event based on how much it resembles their existing stereotypes, rather than based on actual evidence or likelihood.