What would have happened if the debt ceiling had not been raised in early 2011?
A) The U.S. government would have raised taxes.
B) The U.S. government would have been in default.
C) The U.S. government would have increased borrowings.
D) The U.S. government would have paid down debt.

Question

Quizplus · Accepted Answer

If the debt ceiling had not been raised in early 2011, the U.S. government would have been unable to borrow more money to pay for its existing obligations, leading to a potential default on its debt. This would have had severe consequences for the U.S. economy and the global financial markets, including a potential downgrade of the country's credit rating and a spike in interest rates. Other options, such as raising taxes or increasing borrowings, may have been considered, but default was the most likely outcome if the debt ceiling was not raised. Paying down debt would not have been feasible without sufficient revenue or a significant reduction in spending.

What Would Have Happened If the Debt Ceiling Had Not