Which of the following is true?
A)National debt is not a burden if it is held by overseas interests.
B)National debt redistributes income from taxpayers to those holding government securities.
C)National debt increases when the RBA buys securities from the government.
D)National debt imposes an unfair burden on the current generation.
E)The current level of national debt in Australia is higher than at any stage since the Second World War.

Question

Quizplus · Accepted Answer

National debt involves the government borrowing money through the sale of securities. This creates a transfer of wealth from taxpayers to the holders of government securities, as the government must pay interest on the debt. Therefore, choice B is true.

Answer: C
 When the Reserve Bank of Australia (RBA) buys securities from the government, this can increase the national debt. Therefore, choice C is true.

Answer: E
 According to data from the Australian Government Budget website, the current level of national debt in Australia is indeed the highest it has been since the Second World War. This means that choice E is true.

Answer: A and D
 Neither of these choices is true. National debt is always a burden, regardless of who holds it, as it requires the government to pay interest and principal. Additionally, whether or not it imposes an unfair burden depends on factors such as the level of debt, interest rates, and economic growth. Therefore, choices A and D are false.

Which of the Following Is True