In order to reduce the U.S.debt,
A)The government must use deficit spending.
B)The government should spend less than it collects in tax revenues.
C)There will be a transfer of revenue from bondholders to taxpayers.
D)Foreign governments must lend more money to the U.S. government.

Question

Quizplus · Accepted Answer

The best way to reduce U.S. debt is for the government to spend less than it collects in tax revenues. This means reducing government spending, increasing tax revenue, or a combination of both. Deficit spending (choice A) means the government is spending more money than it takes in, which leads to an increase in the national debt. A transfer of revenue from bondholders to taxpayers (choice C) is not a solution to reducing the debt, as it does not address the underlying issue of government spending. Relying on foreign governments to lend more money (choice D) also increases the debt and makes the U.S. economy more vulnerable to external factors.

In Order to Reduce the U.S.debt