Which of the following will make it more difficult for the United States to control the growth of the federal debt in the decade ahead?
A) Debt financing makes it possible for elected political officials to provide voters with highly visible current benefits without having to impose visible current cost in the form of higher taxes.
B) The movement of the large baby-boom generation into the retirement phase of life will make it more difficult to control federal spending.
C) The recent growth of the federal debt as a share of GDP will tend to increase interest costs in the future.
D) All of the above.

Question

Quizplus · Accepted Answer

All of the options listed will make it more difficult for the United States to control the growth of the federal debt in the decade ahead. Debt financing allows politicians to provide benefits without raising taxes, which can increase the debt. The retirement of the baby-boom generation will increase federal spending on programs such as Social Security and Medicare, also contributing to debt growth. Finally, as the debt-to-GDP ratio increases, interest costs will also rise, further exacerbating the debt problem.

Which of the Following Will Make It More Difficult for the United