Paying off the entire national debt would:

Question

Quizplus · Accepted Answer

Paying off the entire national debt would indeed cause dollars to leave the U.S. as the government would likely need to use some of its foreign-held assets or currencies to do so. It would have a contractionary effect on the economy because it would reduce the amount of government bonds in the market, leading to a decrease in the money supply. Additionally, it tends to benefit persons in upper income groups because they are more likely to hold government bonds, which would increase in value as the debt is paid off.

Paying Off the Entire National Debt Would