Debt ceilings are designed to
A)Reduce the deficit.
B)Balance the federal budget.
C)Specifically reduce the external debt.
D)Do nothing since the Supreme Court held them unconstitutional in 1985.

Question

Quizplus · Accepted Answer

Debt ceilings are designed to limit the amount of money the federal government can borrow, thus limiting the overall national debt. By forcing the government to live within its means, the hope is that it will reduce the deficit over time. However, debt ceilings do not necessarily lead to a balanced federal budget or a reduction in external debt, as they only limit the amount of money that can be borrowed, not necessarily the amount that is spent. Additionally, while the constitutionality of debt ceilings has been questioned, they have not been ruled unconstitutional by the Supreme Court.

Debt Ceilings Are Designed to