During a period of recession, a federal government surplus should retire debt owed

Question

During a period of recession, a federal government surplus should retire debt owed​

Quizplus · Accepted Answer

During a period of recession, retiring debt owed by the federal government to the general public can help stimulate the economy by putting more money in the hands of consumers and increasing consumer spending. Retiring debt owed to the Federal Reserve or commercial banks may not have the same effect, as those entities are not necessarily focused on increasing consumer spending. The Federal Deposit Insurance Corporation does not hold federal government debt, so it is not relevant to this question.

During a Period of Recession, a Federal Government Surplus Should