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.
b
You might also like to view...
The Fed's Regulation Q
A) placed a ceiling on the interest rates U.S. banks could pay on time deposits to foreigners. B) placed a ceiling on the interest rates U.S. banks could pay on time deposits. C) placed a ceiling on the amount U.S. residents can deposits in Euro banks. D) placed a ceiling on the amount foreign residents can deposits in domestic American banks. E) placed a ceiling on the amount foreign banks can pay on time deposits.
In the monetary small open-economy model with a fixed exchange rate, an increase in the domestic price level has which impact on domestic money demand?
A) It increases it. B) It decreases it. C) It has no impact. D) It depends.