What is the redistribution effect of a high domestic-owned national debt?
A)Income is redistributed from taxpayers to bondholders.
B)Income is redistributed from bondholders to taxpayers.
C)Income is redistributed from lenders to borrowers.
D)Income is redistributed from lenders to governments.
E)There is no redistribution effect of domestic debt.

Question

Quizplus · Accepted Answer

With a high domestic-owned national debt, the government is essentially borrowing from its citizens. As a result, income is redistributed from taxpayers (who lend the money through buying government bonds) to bondholders, who receive interest payments on their investments.

What Is the Redistribution Effect of a High Domestic-Owned National