Answer the following questions from the video. Click here for the link.

1. How did the government get into debt?
2. How does the government receive money to spend?
3. If the government does not have enough revenue (money) from taxes to spend on public goods like social security, health care, and defense, where does it get its money?
4. How does the government borrow money?
5. Who buys the treasury bonds?
6. Why does the government pay back more to the central banks and investors than it borrowed?
7. Whom does the government owe money to? List them.
8. Whom does the government owe the most from what it borrowed?
9. As stated earlier, the US has to pay back everything it borrowed with interest, just like you and me when we borrow money from the bank. Currently, interest rates are historically low.

1. 1. Why should the government take advantage of the low interest rates? Explain.
   2. How could a rise in interest rates be bad news for the US government as it pays back its loans? Explain.