The national debt is unlikely to cause national bankruptcy because the:

Question

Quizplus · Accepted Answer

The national debt can be refinanced by issuing new bonds, which means the government can continue to borrow money to cover its obligations and avoid national bankruptcy. Option B is incorrect because the interest on the public debt does not equal GDP, and option C is incorrect because the national debt can be shifted to future generations for repayment through continued borrowing. Option D is also incorrect because the federal government can refinance the outstanding national debt.

The National Debt Is Unlikely to Cause National Bankruptcy Because