a.during both periods of recession and prosperity
b. just during periods of recession
c. just during periods of prosperity
d. never
2006-12-05 05:15:39 · 4 answers · asked by ECO 360 1 in Social Science ➔ Economics
d. They need to wipe that slate clean. Start over already!!!
2006-12-05 05:26:33 · answer #1 · answered by Anonymous · 0⤊ 0⤋
A.
Nathional debt is different to debt most people think of. its many trillions of dollars that have accumulated in debt over the last hundreds of years. Most of it is the money owed by the state to the people. Treasury bonds and other securities are all examples of state 'borrowing' from the people and promises to pay interest. Bonds and such all have different maturity points so, some mature everyday which have been baught weeks, month or many years ago (10,20,50 etc) years ago, similary, those bought today will mature in weeks, moth or years from now.
So, it doesn't matter if the period is recession or prosperity, national debt must be paid. Otherwise, the whole economic system would meltdown.
2006-12-05 15:35:16 · answer #2 · answered by Yura 2 · 0⤊ 0⤋
C.
Reduction of national debt is a contractionary policy measure and should be applied only during periods of expansion.
2006-12-05 13:26:47 · answer #3 · answered by NC 7 · 0⤊ 0⤋
b. because paying of debt will increase money supply and thus lead to an expansion
2006-12-05 13:32:50 · answer #4 · answered by Dirk N 3 · 0⤊ 0⤋