A potential problem of the national debt is

Question

Quizplus · Accepted Answer

While debt can be a useful tool for governments to finance public services and investment, high interest payments on the debt can create a self-perpetuating cycle of debt. This can limit the government's ability to invest in public services and can even lead to default or bankruptcy in extreme cases. A and D are incorrect as debt is not always bad and Canada is not at risk of bankruptcy. B is a possible issue with government borrowing but it is not directly related to the problem of the national debt itself.

A Potential Problem of the National Debt Is