The Federal Government Can Always Avoid Default on Its Issues

question 75

Multiple Choice

The federal government can always avoid default on its issues because of its unique right to:

• A)change Treasury bond yields to zero at its discretion.
• B)print money.
• C)tax.
• D)wage war.

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Definitions:

Guarantee

A formal assurance or promise, typically in writing, that certain conditions will be fulfilled, including the quality and durability of a product or service.

Writing

The act or process of composing text or inscriptions.

Statute of Frauds

A law requiring certain types of contracts to be written and signed in order to be legally enforceable.

Charitable Tax Relief

Tax deductions or exemptions granted to donors of charitable contributions, incentivizing the support of non-profit organizations.