Which of the following statements is an accurate comment on the payment of interest on the public debt?
A)It leads to an increase in our standard of living.
B)It has no effect on the distribution of income.
C)It probably decreases income inequality.
D)It probably increases income inequality.
E)It decreases the value of a country's assets.

Question

Quizplus · Accepted Answer

Payment of interest on the public debt is often funded through taxation, which tends to disproportionally affect lower-income individuals. This can lead to an increase in income inequality.

Which of the Following Statements Is an Accurate Comment on the Payment