During a period of recession, a federal government surplus should retire debt owed a. the Federal...

Question

Question

During a period of recession, a federal government surplus should retire debt owed

	a.	the Federal Reserve.
	b.	commercial banks.
	c.	the general public.
	d.	the Federal Deposit Insurance Corporation.

Answer 1

Answer #1

During a period of recession, a federal government surplus should retire debt owed by the general public.

Reason:

During this time, it is the public which needs more help in terms of liquidity.

.

So, correct answer is Option-C: the general public.

Answer 2

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