What Would Have Happened If the Debt Ceiling Had Not

question 49

Multiple Choice

What would have happened if the debt ceiling had not been raised in early 2011?

• A) The U.S. government would have raised taxes.
• B) The U.S. government would have been in default.
• C) The U.S. government would have increased borrowings.
• D) The U.S. government would have paid down debt.

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Definitions:

Circumstances

A fact or condition connected with or relevant to an event or action, often influencing it or determining the outcomes.

Economic Theory

A set of principles and models that attempts to explain how economies operate and how economic agents interact.

Real-world Events

Occurrences or incidents that take place in the actual world as opposed to theoretical or artificial environments.

Plausibility

The quality of seeming reasonable or probable, often used to describe theories, arguments, or scenarios that are believable based on evidence or logic.