The national debt refers to the difference between revenues and expenditures in any given
32. A deficit refers to the accumulated differences between revenues and expenditures over
33. A true understanding of the consequences of public debt requires knowledge only of the
current deficit’s magnitude.
34. When the government sells its debt to citizens rather than other government agencies it is
creating external debt.
35. Regressive taxes have a negative impact on citizens while progressive taxes have a
36. The use of increased taxation to, ceteris paribus, reduce the level of a country’s internal
debt must reduce its aggregate demand.
37. The current U.S. income tax structure has the highest marginal tax rate in U.S. history for
individuals earning the highest incomes.
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