Solved

Suppose the U

Question 257

Multiple Choice

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:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents