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The national debt is unlikely to cause national bankruptcy because:

A. New bonds can refinance the national debt

B. interest on national debt is high

C. future generation cannot refinace national debt

D. federal government cannot refinance national debt

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Yusra Anees
Yusra AneesLv10
21 Oct 2020

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Related questions

7. Currently the U.S. national debt is over $20 Trillion. Many people feel the high level of the national debt is a very bad thing and it should be paid off.

a. Advantages of paying off the national debt.

i. Explain what would be involved in paying off the national debt.

ii. List and explain in detail, 3 advantages of paying off the national debt.

b. Disadvantages of paying off the national debt?

i. List and explain in detail, 3 disadvantages of paying off the national debt.

c. List and explain 3 approaches to getting the money to eliminate the national debt. Include the impacts each approach would have on the U.S. economy.

d. State which approach you would use to get the money. Why did you select the approach that you selected and not the alternatives?

e. Thoroughly and completely explain how your approach would work to eliminate the national debt,and explain the impact your solution would have on at least 5,key economic variables?

i. Implement your approach and use the what - happens - next approach to capture the detail of how your solution might work.

27.Individuals with low incomes probably

a. pay no Social Security tax

b. pay more Social Security tax than income tax

c. pay less Social Security tax than personal income tax

d. pay no taxes at all

e. are avoiding most of their tax payments

28. Which of the following is true?

a. The federal budget deficit is a flow and so is the national debt.

b. The national debt is both a stock and a flow.

c. The federal budget deficit is a stock and the national debt is a flow.

d. The federal budget deficit is a flow and the national debt is a stock.

e. The federal budget deficit is stock and so is the national debt.

30. When the U.S. government runs a deficit, it usually does the following:

a. it buys government bonds from the public

b. it asks the Treasury Department to print money to pay for the deficit

c. it sells new government bonds to the public

d. it borrows money directly from the Federal Reserve

e. it asks the Federal Reserve to print money to pay for the deficit

32. Under what condition can the U.S. government continue to pay interest on a rising debt without eventually needing to increase the average tax rate?

a. if the national debt grows at the same rate as nominal GDP

b. if the nominal interest on the national debt grows faster than nominal GDP

c. if the total interest payments on the national debt grow faster than nominal GDP

d. if the national debt grows faster than nominal GDP

e. if the real interest on the national debt grows faster than real GDP

34.The national debt

a. will be zero when the federal budget is balanced.

b. has been shrinking in the last 30 years.

c. is equal to the government’s budget deficit.

d. can grow without negative economic effects.

36.In the long run,

a. an increase in the federal budget deficit can lower the interest rate and investment spending.

b. an increase in the federal budget deficit can raise the interest rate and investment spending.

c. a decrease in the federal budget deficit can lower the interest rate and raise investment spending.

d. a decrease in the federal budget deficit can raise the interest rate and lower investment spending.

44. If the Fed conducts open market purchases (of bonds), we should expect to see the money supply

a. decrease, the interest rate increase, autonomous consumption decrease, business investment decrease, and real GDP decrease

b. increase, the interest rate decrease, autonomous consumption decrease, business investment decrease, and real GDP decrease

c. increase, the interest rate decrease, autonomous consumption increase, business investment increase, and real GDP increase

d. decrease, the interest rate decrease, autonomous consumption increase, business investment increase, and real GDP decrease

e. decrease, the interest rate increase, autonomous consumption increase, business investment increase, and real GDP increase

48. In the classical model the interest rate is determined in the money market; in the short-run macro model, the interest rate is determined in the market for loanable funds.

a. true

b. false

When the U.S. government spends more than it receives within a fiscal year, this is called the

A. National debt.

B. Fiscal debt.

C. Federal deficit.

D. Economic debt

E. Consumer debt.

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