Accumulating debt poses a problem for the U.S.federal government because

Question

Quizplus · Accepted Answer

A high debt-to-GDP ratio can lead to crowding out, which means the government may need to borrow more to pay off its debt, which can lead to higher interest rates and less investment in the private sector. This can have negative effects on the overall economy. While the other options may also pose problems, they do not address the specific issue of the debt-to-GDP ratio.

Accumulating Debt Poses a Problem for the U