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An Outcome Associated with a Large National Debt Is That

Question 33

Multiple Choice

An outcome associated with a large national debt is that the interest payments on the debt


A) increase the size of the country's capital stock.
B) require that the government sell off some of the country's assets such as public lands.
C) lead to a redistribution of income from the poor to the rich.
D) reduce the amount of tax revenues collected by the government.
E) reduce the Fed's ability to carry out monetary policy.

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