Question 05-Difference between Individual and Government Debt. Three reasons government debt is different from individual debt are: • The government lives forever; people don't. • The government can print money to pay its debt; people can't. • Government owes much of its debt to itself- and to its own citizens. Does our federal government ever have to pay off its IOU's - that is, U.S. Treasury Bonds? True, the government can "print money", but what is the concern with this? Does the government really owe much of the debt to itself or U.S. citizens? Refer to the pie chart in on the last page of your student lecture notes - what percent of U.S. government debt is external debt (i.e., held by foreigners)?
Question 05-Difference between Individual and Government Debt. Three reasons government debt is different from individual debt are: • The government lives forever; people don't. • The government can print money to pay its debt; people can't. • Government owes much of its debt to itself- and to its own citizens. Does our federal government ever have to pay off its IOU's - that is, U.S. Treasury Bonds? True, the government can "print money", but what is the concern with this? Does the government really owe much of the debt to itself or U.S. citizens? Refer to the pie chart in on the last page of your student lecture notes - what percent of U.S. government debt is external debt (i.e., held by foreigners)?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Step 1: Define Individual and Government Debt
VIEWStep 2: Does our federal government ever have to pay off its IOU's, that is, U.S. Treasury Bonds?
VIEWStep 3: True, the government can "print money", but what is the concern with this?
VIEWStep 4: (c) Does the government really owe much of the debt to itself or U.S. citizens?
VIEWSolution
VIEWTrending now
This is a popular solution!
Step by step
Solved in 5 steps with 1 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.Recommended textbooks for you
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning
Managerial Economics & Business Strategy (Mcgraw-…
Economics
ISBN:
9781259290619
Author:
Michael Baye, Jeff Prince
Publisher:
McGraw-Hill Education