Paying interest on internal government debt involves a:
A)net reduction in domestic income.
B)redistribution of income among citizens of the country.
C)net increase in domestic income.
D)redistribution of income to citizens of other countries.

Question

Quizplus · Accepted Answer

Paying interest on internal government debt involves a redistribution of income among citizens of the country, as the government collects taxes from its citizens to pay interest to the holders of its debt, who are also its citizens.

Paying Interest on Internal Government Debt Involves A