The Increase in the Portion of the National Debt Held

Multiple Choice

The increase in the portion of the national debt held by foreigners is cause for concern because:

A) foreigners will have increasing political influence.
B) when the debt is repaid, there may be a reduction in the amount of goods and services available to citizens.
C) there is a redistribution of income from taxpayers to debt holders.
D) The above statement is incorrect. There are no economic consequences associated with increased foreign holdings of the national debt.