Will a Large Quantity of Bonds Held in the Social

question 129

Multiple Choice

Will a large quantity of bonds held in the Social Security Trust Fund make it easier to deal with the retirement of the baby boomers?

• A) Yes; the federal government will be able to redeem these bonds in the future without raising taxes or increasing its borrowing.
• B) Yes; the interest on these bonds will provide the federal government with a stream of net revenue in the future.
• C) Yes, but only if the federal government holds these bonds until they mature.
• D) No; the federal government cannot redeem the bonds without raising revenues for their redemption from other sources.

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