If all U.S. government bonds are held by U.S. citizens, then
A) the bondholders earn no interest income.
B) there is no tax liability for funding the debt.
C) there is no net change in national wealth when the national debt changes.
D) the tax liability for funding the debt is not offset by the interest earnings of bondholders.
E) government bonds are worthless.
Correct Answer:
Verified
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