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If the Federal Government Fails to Reduce the Nation's Debt

Question 59

Multiple Choice

If the federal government fails to reduce the nation's debt relative to income,


A) it will become easier to borrow in the global credit markets.
B) the interest expenses on the outstanding debt will increase.
C) the cost of holding outstanding debt will decrease.
D) it will be easier to cover the interest on outstanding debt with tax revenues.

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