Which of the following is a reason why we should consider the federal national debt a problem?
A)The federal government is in danger of defaulting on its debt.
B)If the debt drives up interest rates,crowding out will occur.
C)If the debt was incurred to finance improvements in infrastructure,crowding out will occur.
D)If the debt was incurred to finance research and development,crowding out will occur.

Question

Quizplus · Accepted Answer

If the federal national debt drives up interest rates, crowding out will occur. This means that there will be less funds available for private investment in areas such as business, housing, and personal finance. This can lead to slower economic growth and lower living standards for citizens. Additionally, if interest payments on the debt continue to rise, it will negatively impact the federal budget and limit the government's ability to address other important issues such as national security and social welfare programs.

Which of the Following Is a Reason Why We Should