Accumulating debt poses a problem for the U.S.federal government because
A)it is currently in danger of defaulting on the debt.
B)a large debt-to-GDP ratio causes crowding out.
C)building roads and bridges do not yield enough benefits to justify their cost.
D)the debt has to ultimately be paid off.

Question

Quizplus · Accepted Answer

A large debt-to-GDP ratio causes crowding out, which means that the government has to spend a larger portion of its budget on interest payments instead of investing in other areas such as education, research, and infrastructure. This can ultimately lead to economic stagnation and impact the overall financial stability of the country. While the other options may be potential issues, they are not as significant as the impact of crowding out.

Accumulating Debt Poses a Problem for the U