"The government shouldn't borrow so much," your uncle claims."Look at that national debt! It's no different from someone borrowing on credit cards they can't pay."

a. Is your uncle right?

• He is right in the sense that when the government spends more than it brings in, it should not borrow to fund the rest.
• He is right in the sense that when the government spends more than it brings in, it must borrow to fund the rest.
• He is right in the sense that the government can never pay its debt.
• He is right in the sense that the government uses credit cards for its purchases.

b. How is government debt spending different from someone borrowing on a credit card?

check all that apply

• The government has an almost unlimited capacity to borrow by issuing Treasury bonds.
• Some borrowing is intragovernmental borrowing, in which the government uses money from other accounts.
• The government has a limited capacity to borrow by issuing Treasury bonds.
• Most borrowing is intragovernmental borrowing, in which the government uses money from the states and municipalities.