5. Concerns about the national debt Which of the following concerns about the national debt are substantive? Check all that apply. If the share of the public debt owned by foreigners increases as the debt rises, U.S. citizens will have to transfer more money abroad. Reducing the size of a large national debt may necessitate higher tax rates. Higher tax rates reduce incentives to innovate, invest, and work, potentially reducing economic growth. Paying off the U.S. national debt will require future generations of Americans to decrease their purchases of goods and services by an amount equal to the existing debt. O Deficit spending always leads to lower levels of capital formation in the long run.
5. Concerns about the national debt Which of the following concerns about the national debt are substantive? Check all that apply. If the share of the public debt owned by foreigners increases as the debt rises, U.S. citizens will have to transfer more money abroad. Reducing the size of a large national debt may necessitate higher tax rates. Higher tax rates reduce incentives to innovate, invest, and work, potentially reducing economic growth. Paying off the U.S. national debt will require future generations of Americans to decrease their purchases of goods and services by an amount equal to the existing debt. O Deficit spending always leads to lower levels of capital formation in the long run.
Chapter17: Federal Deficits, Surpluses, And The National Debt
Section: Chapter Questions
Problem 7SQP
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