As the Outstanding Debt of a Nation Becomes Very Large

Multiple Choice

As the outstanding debt of a nation becomes very large relative to the size of the economy,

A) the borrowing cost of the government will decline.
B) lenders will have no choice but to hold the outstanding bonds and  to buy the new ones as they are offered.
C) a country like the United States will have no choice but to default on the payments to bond holders.
D) if the country has a central bank, it will almost certainly resort to money creation to service the debt rather than directly default.