The national debt is unlikely to cause national bankruptcy because the a. national debt can be refinanced by issuing new bonds. b. interest on the public debt equals GDP. c. national debt cannot be shifted to future generations for repayment. d. federal government cannot repudiate the outstanding national debt.

First, it's essential to understand the terms involved: 1. National debt: The amount of money a country owes through loans and bonds. 2. Refinanced: Obtaining a new loan with different terms in order to pay off an existing loan. 3. GDP: Gross Domestic Product, a measure of a country's overall economic output. 4. National bankruptcy: A situation where a country is unable to pay off its debts.

a. National debt can be refinanced by issuing new bonds: This option is promising, as it relates to the idea that a country can restructure its debt by issuing new bonds. This can reduce the risk of national bankruptcy. b. Interest on the public debt equals GDP: This option doesn't seem relevant as the interest on national debt would not have a direct impact on the likelihood of national bankruptcy. If interest equaled the GDP, it would be an unsustainable situation, but that alone does not guarantee national bankruptcy. c. National debt cannot be shifted to future generations for repayment: National debt can be passed on to future generations for repayment, and such debt effects the economies of those generations. d. Federal government cannot repudiate the outstanding national debt: This option implies that the government cannot deny its debt, which is true. However, it doesn't address whether the national debt can lead to national bankruptcy.

Based on the analysis, the correct answer is (a) national debt can be refinanced by issuing new bonds. This is because issuing new bonds can help a country restructure its debt, thus reducing the risk of national bankruptcy.