When the Social Security system begins running a deficit during the years following 2018, the bonds in the trust fund will be drawn down. The funds to redeem these bonds will have to come from
A) higher taxes, spending reductions in other programs, or additional government borrowing.
B) the surplus funds deposited in governmental banking accounts.
C) equity capital being liquidated.
D) the sale of private equities and securities that the government has been purchasing with the funds.

Question

Quizplus · Accepted Answer

When the Social Security system begins running a deficit, the bonds in the trust fund will have to be redeemed. Funds to redeem these bonds will have to come from higher taxes, spending reductions in other programs, or additional government borrowing.

When the Social Security System Begins Running a Deficit During