If the majority of national debt is held domestically, economists would consider this not to be a burden because:
A) we owe the debt to ourselves.
B) it is only future generations that will have to repay the debt, not us.
C) we can easily pay for this debt out of export income.
D) the government knows how to spend the money better than us.

Question

Quizplus · Accepted Answer

If the majority of national debt is held domestically, it means that the government owes the debt to its citizens and institutions within the country, rather than to foreign nations. In this case, economists would consider it not to be a burden because the money owed is still circulating within the country's economy and can be paid back through taxes and other means without negatively affecting the country's international creditworthiness.

If the Majority of National Debt Is Held Domestically, Economists