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- Why would the private sector purchase government debt?How does the federal government finance a budget deficit? It prints more money. It purchases U.S. Treasury bonds. It cuts spending on entitlement programs. It borrows funds by selling Treasury bonds.Why people buy public debt, even if it does not pay any interest?
- Why do the creditors generally charge higher interest rates on new borrowing?Describe five ways that will ensure the properly used of accumulated savings by the government.The government needs to pay out 350 billion dollars more in Social Security benefits than it collects and Social Security taxes. What are the options for finding this money?
