If the Fraction of U

Multiple Choice

If the fraction of U.S.government securities held by foreigners increases,

A) current consumption by U.S.citizens must fall
B) current consumption by U.S.citizens can rise
C) current consumption increases by U.S.citizens will be offset by equivalent decreases in future consumption when the debt is refinanced
D) current consumption decreases by U.S.citizens will be offset by equivalent increases in future consumption when the debt is refinanced
E) the debt will be less of a burden on our children