Payment of interest on the public debt will:
A)increase our current domestic standard of living.
B)not have any effect on the distribution of income.
C)probably decrease the income inequality.
D)probably increase the income inequality.

Question

Quizplus · Accepted Answer

Payment of interest on the public debt is primarily made to those who hold government bonds, which are typically owned by higher-income individuals and corporations. As a result, paying interest on the public debt probably increases income inequality.

Payment of Interest on the Public Debt Will