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When Is Debt Financing Most Likely to Harm Future Generations

Question 56

Multiple Choice

When is debt financing most likely to harm future generations of Americans?


A) When the debt is held by domestic investors.
B) Any time the debt is held by foreign investors.
C) When the debt is held by foreign investors and the funds are channeled into productive investment projects.
D) When the debt is held by foreign investors and the funds are used to finance either current consumption or unproductive investments.

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