The U.S. government need never default on its debt because
A. it can easily nationalize banks, who own all the debt, and then owe it to itself.
B. it can raise the funds it needs to repay by taxation, and it can print money to repay.
C. it owes the debt to itself, and it can always ignore a demand for repayment.
D. it can simply reduce spending enough to generate funds to repay its debt.
Answer: B
You might also like to view...
An individual has 8 hours to spare. He has to divide his time between two activities: reading and writing. Which of the following allocations will exactly satisfy the individual's budget constraint?
A) 3 hours of reading and 4 hours of writing B) 4 hours of reading and 6 hours of writing C) 2 hours of reading and 2 hours of writing D) 5 hours of reading and 3 hours of writing
Refer to Table 25-2. Suppose a transaction changes a bank's balance sheet as indicated in the following T-account, and the required reserve ratio is 10 percent. As a result of the transaction, the bank can make a maximum loan of
A) $0. B) $800. C) $7,200. D) $8,000.
Productivity is measured as output per unit of productive input
a. True b. False Indicate whether the statement is true or false
What is the MRTS for a firm with the following production function , q = 200L0.5K0.5 with L = 4 and K = 16?
A) MRTS = -4 B) MRTS = -2 C) MRTS = -1 D) MRTS = -8