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The US Government Does Not Have to Repay the National Debt

Question 94

Multiple Choice

The U.S. government does not have to repay the national debt because:


A) it is owed to foreigners who do not have any legal recourse if the debt is not repaid.
B) it can constantly refund the debt by issuing new bonds.
C) it owes nearly 100 percent of the debt to state and local governments.
D) it owes nearly 100 percent of the debt to itself.
E) it is owed to the Federal Reserve

Correct Answer:

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