A major reason that the public debt cannot bankrupt the federal government is because
A) the public debt is mostly held by foreigners.
B) the federal government has the Social Security Trust Fund.
C) the public debt can be easily reﬁnanced by issuing new bonds.
D) the federal government can draw on its gold reserves.

Question

Quizplus · Accepted Answer

The public debt can be easily refinanced by issuing new bonds, which means that the government can borrow more money to pay off its debt. Additionally, the federal government has other sources of revenue, such as taxes, which can be used to pay off the debt. The Social Security Trust Fund and gold reserves can also contribute to the government's ability to manage its debt, but they are not the primary reasons why the debt cannot bankrupt the government.

A Major Reason That the Public Debt Cannot Bankrupt the Federal