What happens if the national debt becomes too large?

Question

Quizplus · Accepted Answer

If the national debt becomes too large, it increases the probability of a financial crisis. This is because a large debt burden can lead to a loss of confidence in the government's ability to repay its debts and can raise concerns about inflation and higher interest rates. This can potentially trigger a recession or even a sovereign default. A and B are not accurate options as printing new money can lead to inflation and closing hospitals can have severe negative consequences on society. Option D is also not accurate as a large national debt can have significant economic consequences.

What Happens If the National Debt Becomes Too Large