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:

Scoria Cone

A small, steep volcanic cone built from lava fragments (scoria) ejected during gas-charged explosive eruptions.

Pumice

A light, porous volcanic rock formed from explosive eruptions, known for its ability to float on water.

Welded Tuff

A type of rock formed from volcanic ash ejected during an eruption, which then falls and welds together under high temperature and pressure.

Feldspar

A group of rock-forming silicate minerals that make up a significant portion of the Earth's crust, commonly found in igneous, metamorphic, and sedimentary rocks.