US Inflation: The National Debt Cannot Be Repaid

Why does the government need inflation to continue?

• To make it easier to pay back debt

• To increase the value of money

• To balance the budget

• To reduce the national debt

What is the current national debt of the US government?

• $36 trillion

• $5 trillion

• $34 trillion

• $34 billion

How does inflation affect the value of debt?

• It has no effect on debt

• It makes debt more valuable

• It increases the value of debt

• It reduces the real value of debt

What would happen in a deflationary environment?

• Prices would go up

• It would be easier to pay back debt

• Tax revenue would increase

• It would be harder to pay back debt

What is a potential consequence if the US government defaults on its debt?

• The dollar would lose Reserve currency status

• The dollar would gain value

• The government would balance its budget

• The national debt would decrease