Because public debt is not evenly held by the public,
a. there may be a disproportionate burden on the wealthy who could pay more in taxes than they get back in interest
b. there is no disproportionate burden in the economy because, on average, tax payments and interest payments balance out
c. the middle class benefits because the rich pay high taxes and the poor hold few bonds
d. there is a disproportionate burden on debt holders because interest payments are not tax deductible
e. there may be a disproportionate burden on the poor in the economy because they may end up paying more in taxes than they receive in interest payments
E
You might also like to view...
A nation's investment must be financed by
A) national saving only. B) the government's budget deficit. C) borrowing from the rest of the world only. D) national saving plus borrowing from the rest of the world.
Economic growth occurs when
A. nominal GDP increases. B. GDP per capita in the short run increases. C. a nation's capacity to produce increases. D. there is a movement along the production possibility curve resulting in increased personal consumption expenditures.