Questions: Decide whether the following statement makes sense (or is clearly true) or does not make sense (or is clearly false). Explain your reasoning.nBecause social security is an entitlement program and is funded by mandatory government spending, I know it will be there when I retire in 40 years.nnChoose the correct answer below.nA. This makes sense because the Treasury bills in the Social Security trust fund represent a publicly held debt, which is money that the government must repay to individuals and institutions that bought Treasury issues.nB. This makes sense because all of the Social Security taxes collected are put into a trust fund that goes out to future retirees.nC. This does not make sense because Social Security is not funded by mandatory government spending. It is a discretionary project.nD. This does not make sense because the gross debt is constantly increasing each year. Eventually the government may not have the resources to repay the Treasury bills, plus interest, in the Social Security trust fund.

The answer is D: This does not make sense because the gross debt is constantly increasing each year. Eventually, the government may not have the resources to repay the Treasury bills, plus interest, in the Social Security trust fund.

Explanation for each option:

A. This option is incorrect. While it is true that the Treasury bills in the Social Security trust fund represent a form of debt that the government must repay, this does not guarantee that Social Security will be available in its current form in 40 years. The ability of the government to repay these debts depends on various economic factors, including the overall fiscal health of the government.

B. This option is partially correct but misleading. While Social Security taxes are indeed collected and placed into a trust fund, this does not guarantee the program's future solvency. The trust fund is projected to be depleted in the coming decades if no changes are made to the system, which could affect future benefits.

C. This option is incorrect. Social Security is funded by mandatory government spending, not discretionary spending. It is an entitlement program, meaning that it is funded through payroll taxes and is not subject to the annual appropriations process that governs discretionary spending.

D. This option is correct. The increasing gross debt and potential fiscal challenges could impact the government's ability to meet its obligations, including those related to Social Security. While Social Security is an entitlement program, its long-term sustainability is a concern due to demographic changes and fiscal pressures.