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The Following Are Important Problems Associated with the Public Debt

Question 4

Multiple Choice

The following are important problems associated with the public debt, except:


A) Payments of interest on the debt lead to greater income inequality
B) Interest payments on the debt tend to reduce economic incentives to work and invest
C) Government borrowing to finance the debt may lead to too much private investment
D) Payment of interest on the debt held by foreigners would send real resources abroad

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