Which would be considered a real burden of the public debt on the domestic output of...
Which would be considered a real burden of the public debt on the domestic output of the United States? Public debt which is held by:
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United States citizens |
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Domestic corporations |
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Foreign corporations |
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The Federal Reserve System |
Homework Answers
The portion of public debt held by foriegn corporations leads to interest payments as well as payment of principal to such corporations. Such payments are made out of domestic output of the United States.
As these corporations are foreign, capital or a part of domestic output of United States flew out of the United States and portion available for use with in United States contracts.
So,
Public debt which is held by the foreign corporations would be considered a real burden of the public debt on the domestic output of the United States.
Hence, the correct answer is the option (3).
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