Question 1

The national debt is unlikely to cause national bankruptcy because the:

Accepted Answer

A)   national debt can be refinanced by issuing new bonds.
B)   interest on the public debt equals GDP.
C)   national debt cannot be shifted to future generations for repayment.
D)   federal government cannot refinance the outstanding national debt.E) A) and C)
F) C) and D)

Question 2

A concern about crowding out caused by increased government borrowing is that:

Accepted Answer

A)   interest rates on private borrowing fall.
B)   lower rates of economic growth can result from a decline in business investment spending.
C)   the federal government may default on its loans.
D)   foreign lenders find it less attractive to help finance federal deficits.E) C) and D)
F) B) and C)

Exam 23: Federal Deficits Surpluses and the National Debt

The national debt is unlikely to cause national bankruptcy because the:

Correct Answer
verified

A concern about crowding out caused by increased government borrowing is that:

Correct Answer
verified

Exam 23: Federal Deficits Surpluses and the National Debt

The national debt is unlikely to cause national bankruptcy because the:

Correct AnswerverifiedShow Answer

A concern about crowding out caused by increased government borrowing is that:

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified