The interest paid on public debt held by _____ is a real claim on American goods and services.
A) U.S. banks
B) foreigners
C) U.S. citizens
D) the Federal Reserve

Question

Quizplus · Accepted Answer

Foreigners holding public debt have the right to receive interest payments, which represents a claim on American goods and services. The interest payments must be made with real resources, such as tax revenue or additional borrowing, which reduces the amount of resources available for other public services or private investment.

The Interest Paid on Public Debt Held by _____ Is