Accumulating debt poses a problem for the U.S. federal government because
A) it is currently in danger of defaulting on the debt.
B) the debt has to ultimately be paid off.
C) building roads and bridges do not yield enough benefits to justify their cost.
D) a large debt-to-GDP ratio causes crowding out.
D
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The marginal cost is an important piece of information for firms and economists to know because it
a. determines the size of the plant you should build b. is the only cost that increases as production increases c. helps determine precisely which production level maximizes profit d. incorporates fixed costs into the production decision e. is a measure of labor productivity
If a firm cannot cover its variable costs, it will
A. operate in the short run and stay in business in the long run. B. operate in the short run and go out of business in the long run. C. shut down in the short run and stay in business in the long run. D. shut down in the short run and go out of business in the long run.