The federal debt requires the U.S. Treasury Department to borrow large amounts of money. This money is diverted from the private sector where it would otherwise be available as loans for all but which of the following?

Question

Quizplus · Accepted Answer

Helping less developed nations modernize industrial plants is not a typical private sector activity, so the borrowing necessary to fund the federal debt would not have a direct impact on this area. However, borrowing does divert money that would otherwise be available for loans to the private sector, including new and expanding businesses, credit items for consumers, and modernizing industrial plants.

The Federal Debt Requires the U