If the U.S.government sells bonds to fund improvements in infrastructure,and the bonds are bought by foreigners,the burden on future U.S.taxpayers

Question

Quizplus · Accepted Answer

If the return on the improvements is at or above the borrowing cost, then the investment is profitable and the burden on future taxpayers is not increased. The fact that the bonds are bought by foreigners does not change this. Therefore, as long as the return on the infrastructure improvements is sufficient, foreign buyers of U.S. bonds can be a viable source of financing without increasing the burden on future U.S. taxpayers.

If the USGovernment Sells Bonds to Fund Improvements in Infrastructure,and the Bonds