Refer to Figure 2-6. If the economy is currently producing at point D, what is the opportunity cost of moving to point B?

The statement that "repaying our enormous national debt will ruin the nation" is

a. true, because taxes will have to go up by such large amounts that American citizens will have very little income to live on. b. true, because most of our national debt is owed to foreigners. c. false, because the government will take emergency measures to prevent national bankruptcy. d. false, because each time the principal on the debt comes due, the U.S. Treasury rolls it over by issuing more debt.

If the national debt is owed to foreigners,

a. the debt constitutes a burden to domestic citizens. b. economic growth will necessarily be higher than if the debt were owed to domestic citizens. c. paying off the debt will involve a transfer of resources within the country. d. future interest payments on the debt are not a burden to the nation.