Under which of the following circumstances should we be concerned about a rising national debt?
A) When it rises at a slower pace than GDP.
B) When the government runs deficits over a long period of time,such as a decade.
C) When it rises at a faster pace than GDP.
D) When the government does not run enough surpluses to counteract prior deficits.
E) When it rises at a slower pace than the money supply.

Question

Quizplus · Accepted Answer

When the national debt rises at a faster pace than GDP, it means that the country's debt is growing more quickly than its ability to pay it off. This can eventually lead to borrowing difficulties, higher interest rates, and possible economic instability.

Under Which of the Following Circumstances Should We Be Concerned