The U.S.federal debt that accumulated between 1970 and 2010
A)Caused significant economic damage to the U.S.economy.
B)Is an asset and a liability for the U.S.economy.
C)Occurred at the expense of the foreign sector.
D)Occurred without an increase in the size of the government sector.

Question

Quizplus · Accepted Answer

The federal debt is both an asset and a liability for the U.S. economy because it represents the government's borrowing from individuals and foreign entities to finance its operations and investments. While it can lead to concerns about sustainability and impact interest rates, it is ultimately a tool for economic growth and stability when used responsibly. Choices A, C, and D are not accurate in describing the nature and impact of federal debt.

The USFederal Debt That Accumulated Between 1970 and 2010