If Interest Rates Rise, the Burden of a Nation's Public

question 252

Multiple Choice

If interest rates rise, the burden of a nation's public debt will _____ and it will be _____ difficult to service its debt.

• A) fall; less
• B) fall; more
• C) rise; less
• D) rise; more

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Definitions:

1930s

A decade marked by the Great Depression, affecting economies worldwide with severe economic downturns, high unemployment rates, and significant social and political impacts.

Stock Market Crash

A rapid and severe downturn in stock prices across a significant cross-section of a stock market, resulting in a significant loss of paper wealth.

Great Depression

A severe worldwide economic downturn that took place mostly during the 1930s, starting in the United States following the stock market crash of 1929 and leading to widespread unemployment, severe deflation, and significant declines in economic output.

Herbert Hoover

The 31st President of the United States, serving from 1929 to 1933, best known for his leadership during the early years of the Great Depression.