When the Social Security system begins running a deficit, the bonds in the trust fund will be drawn down. The funds to redeem these bonds will have to come from
a. higher taxes, spending reductions in other programs, or additional government borrowing.
b. the surplus funds deposited in governmental banking accounts.
c. equity capital being liquidated.
d. the sale of private equities and securities that the government has been purchasing with the funds.
A
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The Sherman Antitrust Act prohibits executives of competing companies from
a. fixing prices, but it does not prohibit them from talking about fixing prices. b. even talking about fixing prices. c. sharing with one another their knowledge of game theory. d. failing to stand by agreements that they had made with one another.
It is the responsibility of the Trading Desk at the Federal Reserve Bank of New York to implement policies in the form of
A. changes in the spread between the federal funds rate and the discount rate that are consistent with rules established by the twelve Federal Reserve bank presidents. B. changes in foreign exchange rates that are consistent with policies established by the Secretary of the Treasury. C. buying or selling government securities that are consistent with the FOMC Directive. D. variations in reserve requirements that are consistent with the announcements by the Chair of the Fed's Board of Governors.