If no foreign residents owned any of the U.S. public debt, then it would be true that
A)there would be no distributional consequences associates with he public debt.
B)U.S. residents would essentially owe the public debt to themselves.
C)there would be no interest payments on the public debt.
D)the public debt would naturally disappear over time.

Question

Quizplus · Accepted Answer

If no foreign residents owned any of the U.S. public debt, all of the debt would be owned by U.S. residents or institutions. This means that U.S. residents would owe the debt to themselves, eliminating any distributional consequences associated with the debt. Interest payments would still need to be made, and the debt would not naturally disappear over time.

If No Foreign Residents Owned Any of the U