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The Increase in the Portion of the National Debt Held

Question 48

Multiple Choice

The increase in the portion of the national debt held by foreigners is cause for concern because:


A) foreigners will have increasing political influence.
B) when the debt is repaid, there may be a reduction in the amount of goods and services available to citizens.
C) there is a redistribution of income from taxpayers to debt holders.
D) The above statement is incorrect. There are no economic consequences associated with increased foreign holdings of the national debt.

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