When the current Social Security surpluses end and the bonds in the trust funds are reduced in order to make payments to retirees, the financing for the redemption of the trust fund bonds will come from
A) higher taxes or more government borrowing.
B) the surplus funds deposited in government 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

The redemption of the trust fund bonds will require the government to either increase taxes or borrow more money, as the trust funds are essentially IOUs from the government to itself.

When the Current Social Security Surpluses End and the Bonds