Question

Fiscal viability of the U.S. economy can be severely

compromised by:
a) Defense spending
b) Unrestrained transfers
c) Absence of entitlement reform
d) b) and c)
e) a) and c)

Answer 1

The fiscal viability of the U.S. economy can be compromised by unrestrained transfers and the absence of entitlement reform.

Defense spending alone does not typically represent the primary risk to fiscal viability.

Step-by-step explanation:

The fiscal viability of the U.S. economy can be compromised by a range of factors that impact the federal budget and spending. Among these factors are:

• Defense spending: Significant resources are allocated to national defense, which can strain the budget if not carefully managed.
• Unrestrained transfers: These include governmental transfers like subsidies and other forms of welfare that, if unchecked, may lead to financial imbalances.
• Absence of entitlement reform: Programs like Medicare and Social Security require reforms to ensure their sustainability over time without overwhelming the budget.

The correct answer to the question of what can severely compromise the fiscal viability of the U.S. economy is: d) b) and c) - 'Unrestrained transfers' and 'Absence of entitlement reform'.