A government with a national debt that is large and growing relative to the size of the economy will

Question

Quizplus · Accepted Answer

As the national debt grows relative to the size of the economy, the government becomes a riskier borrower and may eventually find it difficult to borrow in global credit markets. Additionally, as the debt grows, a larger proportion of tax revenue must be dedicated to paying off the interest on the debt. This can lead to less money being available for other government programs and potentially lower economic growth. Therefore, both options A and C are correct.

A Government with a National Debt That Is Large and Growing