An increase in the public debt and its subsequent repayment will tend to
A) mildly reduce the income inequality in the United States.
B) mildly increase the income inequality in the United States.
C) have no impact on the income distribution in the United States.
D) make the income distribution more equitable in the United States.

Question

Quizplus · Accepted Answer

An increase in public debt usually leads to the need for higher taxes and/or reduced government spending in the future, which may disproportionately affect lower-income individuals and thus increase income inequality.

An Increase in the Public Debt and Its Subsequent Repayment