U.S. Debt Ceiling Deadline Could Be Sooner Than Anticipated

The U.S. government’s deadline to raise the $31.4 trillion debt ceiling could be sooner than expected. Goldman Sachs analysts said weak tax collections in April indicate a higher probability that the so-called “X-date,” when the government is no longer able to pay all its bills, would be reached in June. —reuters.com

Answer the following questions to check your understanding of the story.

1) Why does the United States have a government debt?

The United States has a government debt because _____________.

a) every year, the government has a budget deficit

b) the sum of its past government budget deficits exceeds the sum of its past government budget surpluses

c) the government response to the pandemic created several years of budget deficits

d) over the country’s entire history, there have been more years with budget deficits than budget surpluses

2) Why is the government debt increasing?

The government debt is increasing because _____________.

a) people are slow to pay their income tax obligations

b) rising interest rates have increased debt interest payments

c) in the current fiscal year, outlays exceed receipts

d) Congress and the President cannot agree on discretionary taxes and expenditures

U.S. Debt Ceiling Deadline Could Be Sooner Than Anticipated

Like this:

Leave a ReplyCancel reply

Share this:

Like this:

Leave a ReplyCancel reply

Discover more from Econ Eye