One reason the public debt will not bankrupt the Federal government is that the:
A)cost is shifted to future generations.
B)debt has a pro-cyclical effect on the economy.
C)debt can be refinanced by selling new bonds.
D)burden of the debt will be crowded-out by new investment.

Question

Quizplus · Accepted Answer

The public debt can be refinanced by selling new bonds, which means that the government can continue to pay off the old debt by taking on new debt. This allows the government to avoid defaulting on its debt and can help to keep the government solvent in the short term. However, it is important to note that continually refinancing debt can lead to higher interest payments and a larger debt burden over time.

One Reason the Public Debt Will Not Bankrupt the Federal