If the national debt is owned by domestic citizens,
A)the debt will not have to be repaid.
B)future interest payments transfer funds from one group of Americans to another.
C)the debt will have to be repaid first to domestic creditors, then to foreign creditors.
D)future interest payments will go to pay foreign debt first, then debt owed to American citizens.

Question

Quizplus · Accepted Answer

If the national debt is owned by domestic citizens, future interest payments will be transferred from one group of Americans to another. This means that taxpayers' money will go toward paying interest on the debt to American citizens who hold government bonds, rather than being invested in other areas of the economy.

If the National Debt Is Owned by Domestic Citizens