Because public debt is not evenly held by the public,
a. there may be a disproportionate burden on the wealthy who could pay more in taxes than they get back in interest
b. there is no disproportionate burden in the economy because, on average, tax payments and interest payments balance out
c. the middle class benefits because the rich pay high taxes and the poor hold few bonds
d. there is a disproportionate burden on debt holders because interest payments are not tax deductible
e. there may be a disproportionate burden on the poor in the economy because they may end up paying more in taxes than they receive in interest payments
E
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If the market for a product begins as perfectly competitive and then becomes a monopoly, there will be a reduction in economic efficiency and a deadweight loss
Indicate whether the statement is true or false
Post-Revolutionary trade data show that after 1790:
a. U.S. trade with non-British areas of the Caribbean increased. b. the export of food to the West Indies increased. c. trade in the southern U.S. did not keep pace with population growth. d. the U.S. exported tobacco to France and the Netherlands. e. All of the above.
With a monopolist's outcome, consumer surplus is:
A. higher than that of a competitive market. B. lower than that of a competitive market. C. the same as that of a competitive market. D. Any of these is possible.
According to rational expectations, if policy makers consistently stimulate aggregate demand when real output falls below the economy's potential output, then people will not be able to anticipate the effects of this policy on the price level, unemployment, and the real output level
Indicate whether the statement is true or false