Question: How would each of the following events affect the national debt as it is currently measured?
a. The government borrows to finance a Memorial Day parade.
b. The Statue of Liberty is sold to a group of private entrepreneurs.
c. A law is passed promising free medical care to every child under 5 years of age.
d. The government levies a tax of $100 on Lynne this year, and promises to pay her $105 next year.
e. The government borrows $100 from Lynne this year, and pays back the $100 with 5 per-cent interest next year. If you were designing an accounting system for the government, how would you treat each of these items?