The interest paid on internally held debt is
A) a real claim on American goods and services.
B) roughly 20% of the federal budget.
C) paid out to one group of Americans from the taxes collected from another group of Americans.
D) a real burden on the U.S. economy.

Question

Quizplus · Accepted Answer

The interest paid on internally held debt is paid out to one group of Americans from the taxes collected from another group of Americans. This means that the interest payments do not represent a real claim on American goods and services or a burden on the U.S. economy. The percentage of the federal budget devoted to paying interest on the debt varies from year to year, but typically ranges between 6-10%, making choice B incorrect.

The Interest Paid on Internally Held Debt Is