The USGovernment Need Never Default on Its Debt Because

question 83

Multiple Choice

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.

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Definitions:

Social Identity Theory

A psychological theory that explains how individuals categorize themselves and others into groups, leading to identification with one's own group and discrimination against others.

Social Comparison

The comparison of oneself to others in ways that raise one’s self-esteem.

Control Group

A control group is a baseline group in an experiment that does not receive the experimental treatment, allowing researchers to measure the effect of the treatment by comparing it to this group.

Self-Fulfilling Prophecy

A belief or expectation that an individual holds about a future event that manifests because the individual holds it.