Which of the Following Would Be  True If All the National

question 35

Multiple Choice

Which of the following would be  true if all the national debt were owned internally?

• A) The federal government would not need to refinance the national debt.
• B) The federal government would not need to worry about raising taxes to pay interest on the national debt.
• C) We would still be concerned about the effect on the distribution of income from interest payments on the national debt.
• D) Budget surpluses would be more likely than budget deficits.

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Definitions:

Reasonably Possible

A term used in accounting and legal contexts to describe outcomes that are more than remote but less than likely.

Liability Likelihood

The probability or likelihood that a company will be responsible for an obligation or debt in the future.

Reasonably Possible

A term used in accounting and finance to denote outcomes that are more than a remote possibility but less likely than probable.

Estimable

Capable of being estimated or approximately calculated.