If the Public Debt Can Be Financed Without Adding to Inflation

question 14

Multiple Choice

If the public debt can be financed without adding to inflation or causing interest rates to rise, it is said to be:

• A)only a burden on future generations.
• B)following the golden rule of the public finances.
• C)in primary balance.
• D)sustainable

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Definitions:

Self-Employment Tax

A social security and Medicare tax primarily for individuals who work for themselves.

Tax Liability

The total amount of tax that an individual or entity is legally obligated to pay to a tax authority.

Semiweekly Schedule Depositor

A tax deposit schedule required for employers who accumulate a certain amount of tax liability within a specific timeframe, mandating deposits to be made semi-weekly.

Federal Income Tax

Federal income tax is a tax levied by the IRS on the annual earnings of individuals, corporations, trusts, and other legal entities.