As government debt increases,
A)Congress will reduce spending by an equal proportion.
B)the government must spend more revenue on interest payments.
C)a trade-off with government deficits is inevitable.
D)tax rates must rise to cover the deficit.

Question

Quizplus · Accepted Answer

As the government debt increases, the government must spend more revenue on interest payments to service the debt, which can result in less funding for other government programs. This can lead to a budget deficit, which ultimately increases the debt further. Therefore, government debt and interest payments are closely related. The other options do not accurately reflect the relationship between government debt and its consequences.

As Government Debt Increases