Which of the following would be a consequence of the retirement of the internally held portion of the public debt?

A) A reduction in the nation's productive capacity
B) A reduction in the nation's standard of living
C) A redistribution of the nation's wealth among its citizens
D) An increase in aggregate expenditures in the economy

Internally Held

Pertains to public debt that is owed to lenders within a country rather than external lenders.

Public Debt

The total amount of money that a country's government has borrowed by various means, including foreign governments and international organizations.

Productive Capacity

The maximum output that an economy can achieve when using its resources fully and efficiently.