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:

Property Taxes

Taxes levied by local governments on real estate based on the property's value.

Insurance Premiums

Payments made to insurance companies to provide coverage for certain risks, such as property damage or liability.

Direct Costs

Expenses that can be directly attributed to the production of specific goods or services, such as raw materials and direct labor.

Liability Insurance

An insurance policy that provides protection against claims resulting from injuries and damage to people and/or property.