Most of the U.S. public debt is owed to the nation's citizens and domestic institutions. This is one reason that the public debt
A) crowds out private investment.
B) does not impose a large burden on future generations.
C) has a procyclical economic effect on the economy.
D) can result in the bankruptcy of the Federal government.

Question

Quizplus · Accepted Answer

Since the majority of the U.S. public debt is owed to citizens and domestic institutions, it does not have a large burden on future generations. This is because the debt is essentially owed to the country itself, rather than to foreign entities who may demand repayment with interest.