Refunding the debt refers to a. selling new bonds to raise money to pay off matu

Question

Refunding the debt refers to
a. selling new bonds to raise money to pay off maturing bonds
b. raising taxes to lower the national debt ceiling
c. raising the debt ceiling to allow the government to issue more debt
d. Fed purchases of government bonds in the open market



Raising taxes in order to pay off the U.S. national debt would result in a significant redistribution of income.
True
False

The equality-of-sacrifice doctrine of taxation is based on the
a. increasing marginal utility of income
b. increasing marginal utility of government transfer payments
c. diminishing marginal utility of income
d. diminishing marginal utility of government transfer payments

A sales tax is sometimes said to be regressive because the rate at which it is assessed declines as more and more taxable items are purchased.
True
False

Explanation / Answer

Refunding the debt refers to b) raising taxes to lower the national debt ceiling

Raising taxes in order to pay off the U.S. national debt would result in a significant redistribution of income. TRUE

The equality-of-sacrifice doctrine of taxation is based on the b)increasing marginal utility of government transfer payments

A sales tax is sometimes said to be regressive because the rate at which it is assessed declines as more and more taxable items are purchased. FALSE

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