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Need some help with these questions, thanks! Evaluate the following statement explaining why our grandchildren may not suffer the entire burden of a federal deficit.
Need some help with these questions, thanks!
Evaluate the following statement explaining why our grandchildren may not suffer the entire burden of a federal deficit. True or False: The burden of the national debt on present and future generations depends on who owns the accumulated national debt. If the debt is owned internally, then debt payment is simply a transfer of income between households in the nation in the future. 0 True 0 False If, over time, real government budget decit remains unchanged, and national debt continues to increase, a V portion of available tax dollars will be spent on interest payments on the debt, and as a result, Y can be spent on highways, health care, defense, and other public sector programs. Suppose you are the economic policy adviser to the president and are asked what should be done to eliminate a federal deficit. In the following table, indicate the impact of each action on the federal budget deficit. Action Increases Deficit Decreases Deficit The government increases spending and decreases taxes. O O The government decreases spending and increases taxes. O O The government pays down the national debt. O OEvaluate the following statement. True or False: The most unlikely problem of the national debt is that the government will go bankrupt. 0 True, because the U.S. Treasury can roll over the debt by issuing new securities. 0 False, because when government securities mature, the U.S. Treasury will default on its obligations. 0 False, because the government decit is always growing. 0 True, because the government surplus is always growingStep by Step Solution
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