A person states that "a large public debt will bankrupt the U.S. government." An economist is likely to respond:
A) yes because a large public debt means that the U.S. government will not be able to meet its financial obligations.
B) yes because this public debt will reduce our ability to borrow the necessary funds from foreign nations.
C) no because the government can refinance the public debt by selling new bonds.
D) no because most of the public debt is held by foreign nations.
Correct Answer:
Verified
Q49: A government budget deficit occurs when government
Q50: The public debt is the:
A) difference between
Q51: How is the public debt calculated?
A) By
Q52: To track the interest on the public
Q53: In 2015, the public debt was about:
A)
Q55: One important consequence of the public debt
Q56: Which would be considered a real burden
Q57: As of 2014, the Social Security program
Q58: What was the first year that Social
Q59: Based on recent estimates, in what year
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