Suppose the U.S. government decides to pay off all of its debt. Which of the following would NOT be a consequence of this action?
A) Inflation would go up because the government must print money in order to repay its debt.
B) Income would be redistributed to the poor, because lower-income individuals tend to own more government bonds than the average taxpayer.
C) People would need to find new places to put their savings that were previously in government bonds.
D) Foreigners, who are not taxpayers, would gain at the expense of U.S. taxpayers.
Correct Answer:
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