VI. Define the terms:

budget deficit internal debt

Treasury bonds external debt

national debt refinancing

liability deficit ceiling

asset debt ceiling

VII. Translate into English:

1. KynyiouM Ka3Ha4efict>Ki o6nirau.fi, ntoA" no3nnaK>Tb rpouji ypafloei. 2. Dpe3MAeHT CppaHKniH Py3Bent>T o6iu,»e 36anaHcy-BaTu cpeAepanbHHki 6tOA>KeT, ane He 3Mir 3ynHHMTM 3pocraHHS Ae#iu,MTy oroflweiy. 3. y nepioA 3 1790 no 1917 po*y Aep-jKasHMM oopr CLUA nepeBHmyBas BanoBMM HaujoHanbHMii npo-Ay«T nMUje e ponw rpoMaAaHcbKoTBiMHw. 4. OaHaK nicnn 1917 po­ny p03Mip Ae$^iu.^MTy pi3KO 3pic. 5. ypsiA ClilA Bonoflie 1/3 ycix Ka3HaneScbKMX o6nirau,iw. 6. Ha npHBaTHwfi ceKTOp npwna-Aae Mati>Ke nonoBMHa AepwaBHoro 6opry. 7. lno3eMHi no3MKM niABnmyiOTt> piBem> cnomnBaHHs, iHBecTHU,ifi i cpiHaHcyBaHHJt. 8. Cnonyneni LUraTH AMepHKM BMKopncTOByioTb no3MKw ana (piHaHcyBaHHFi ypnflOBMX BKTpar.

VIII. Read and dramatize the following dialogue:

A.: It may be comforting to know that most of the U.S. national debt is owned internally, and much of it by the government itself.

8.: How much of a «burden» does the debt really represent?

A.; It is not so evident. None of the debt has been repaid since you were born. The federal government has borrowed more money each year to finance deficits, adding to accu­mulated debt.

B.: I see, the federal government has simply borrowed new funds to pay debts off, but every debt requires debt-servicing.

A.: Yes, with $3 trillion in accumulated debt, the U.S. government must make enormous interest payments each year. In 1991 the U.S. Treasury paid over $173 billion in interest charges.

8.: Who gets the interest payments?

A.; As noted, most of the nation's outstanding debt is internal — that is owned by domestic households and institutions. Therefore most interest payments are made to people and institutions within the United States. Most debt servicing is simply a redistribution of income from taxpayers to bond­holders.

6.; It seems to me that in many cases the taxpayer and bondholder are the same person.

A,: In all cases, however, the income that leaks from the circular flow in the form of taxes to pay (or debt servicing returns as interest payments.

B.: As a result, total income is unchanged. Now I understand why in policy debates, the aggregate size of the national debt is the focal concern. The key policy questions are whether and how to limit or reduce the national debt.

IX. Make up your own dialogue using the following expressions:

to reduce the annual federal deficit to limit national debt •

to eliminate the budget deficit to finance the deficit

to get interest payments to impose a burden on

to replace old bonds internal debt

external debt debt ceilings

X. Change the following sentences using participle phrases instead of the subordinate clauses:

Model A : The man who was sitting at the window made an interesting report yesterday. The man sitting at the window made an interesting report yesterday. 1. People who hold bonds and stocks hope to realize a

financial gain from these assets. 2. The U.S. Treasury that finan-

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ces the deficit, sells U.S. Treasury bonds. 3. Explicit debt

ceilings that curb the national debt are another mechanism of

economic forces. 4. The federal government that borrows

money to finance deficits, adds to accumulated debt. 5. Much

of a burden that represents a debt is paid by the government

itself.

Model B : The decisions which were adopted at the

conference are supported by many scientists.

The decisions adopted at the conference are

supported by many scientists. 1. All of the debt that is held by U.S. households, institutions and government entities is referred to as internal debt. 2. The ways to limit the national debt which were discussed at the conference are worth consideration. 3. The problem of external debt which was touched upon during the round-table talk is considered now. 4. The news which was received yesterday impressed everybody greatly. 5. National debt which is owned internally is referred to as internal debt.