Accumulating Debt Can Be a Problem for the Federal Government

question 74

Multiple Choice

Accumulating debt can be a problem for the 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)purchases of roads and bridges add burden but no benefit to the economy.
• D)raising the money to borrow is difficult.

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Definitions:

Defense Mechanism

Psychological strategies unconsciously used to protect oneself from anxiety arising from unacceptable thoughts or feelings.

Motor Vehicle Accident

An unintended and harmful event involving one or more vehicles, often resulting in injury or damage.

Prolonged Stress

A continuous state of mental or emotional strain and tension that can lead to various health problems if not managed properly.

Allostasis

The process by which the body responds to stressors and seeks to return to homeostasis, or stability, through physiological and behavioral changes.