Which of the following is a negative aspect of Canada's public debt?
A) it is better than raising taxes in a recession
B) the money is owed primarily to Canadians and not to individuals in other countries
C) it may cause interest rates to increase by increasing the demand for money
D) it is necessary to finance large capital projects

Question

Quizplus · Accepted Answer

Increasing public debt can lead to higher interest rates as the government competes with the private sector for available funds, increasing the demand for money.

Which of the Following Is a Negative Aspect of Canada's