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    Macroeconomics Study Set 43
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    Exam 13: B: Fiscal Policy, Deficits, Surpluses, and Debt
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    One Reason the Public Debt Will Not Bankrupt the Federal
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One Reason the Public Debt Will Not Bankrupt the Federal

Question 181

Question 181

Multiple Choice

One reason the public debt will not bankrupt the Federal government is that the:


A) cost is shifted to future generations.
B) debt has a pro-cyclical effect on the economy.
C) debt can be refinanced by selling new bonds.
D) burden of the debt will be crowded-out by new investment.

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