What are four alternative ways for the federal government to meet its Social Security and Medicareobligations? Why is selling government bonds not a viablesolution?

Four alternative fiscal policy changes that could be made to help the federal government meet its Social Security obligations are_______.

A.

lower interestrates, increase the quantity ofmoney, raise incometaxes, and raise Social Security taxes

B.

raise incometaxes, raise Social Securitytaxes, cut Social Securitybenefits, and cut other federal government spending

C.

increase aggregatedemand, increase potentialGDP, decrease aggregatesupply, and raise interest rates

D.

lower incometaxes, lower Social Securitytaxes, raise Social Security benefits and raise other federal government spending

Selling government bonds is not a viable solution because_______.

A.

most of the bonds would be purchased by foreigners

B.

the current scale of deficit and debt is too large to issue government bonds

C.

selling bonds increases the government budget deficit

D.

when bond holders realize that the government cannot pay all of the bond interestdue, the U.S. and world economies would collapse