Which of the Following Is a Reason Why We Should

Multiple Choice

Which of the following is a reason why we should consider the federal national debt a problem?

A) The federal government is in danger of defaulting on its debt.
B) If the debt drives up interest rates, crowding out will occur.
C) If the debt was incurred to finance improvements in infrastructure, crowding out will occur.
D) If the debt was incurred to finance research and development, crowding out will occur.
E) If the debt increases private consumption less investment will occur.