If the Federal Government Fails to Reduce the Nation's Debt

question 24

Multiple Choice

If the federal government fails to reduce the nation's debt relative to income,

• A)it will become easier to borrow in the global credit markets.
• B)the interest expenses on the outstanding debt will increase.
• C)the cost of holding outstanding debt will decrease.
• D)it will be easier to cover the interest on outstanding debt with tax revenues.

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Definitions:

Grobalization

A term coined to describe the process of cultures or businesses absorbing influences from others and becoming more similar globally, often driven by capitalist markets.

Globalization

The process by which businesses, cultures, and societies become more interconnected and interdependent through trade, technology, and cultural exchange.

Substantively Lacking Phenomena

Phenomena that lack substantial content or depth, often resulting in a need for further examination or understanding.

Transnational

Refers to processes, phenomena or institutions that transcend or operate across national boundaries.