If the US government defaults on its debt payment it could have a big impact on the world eonomy.Which of the following would not be a likely impact?
A)cost of borrowing for US would increase
B)market interest rates in the US would increase
C)mortgage interest rates would increase
D)unemployment would increase
E)the federal deficit would decline

Question

Quizplus · Accepted Answer

A default on US debt payments would likely lead to a decrease in investor confidence and an increase in interest rates, which would make it more expensive for the US to borrow money. This would increase the federal deficit rather than decrease it. Unemployment may also increase as a result of a default, as companies may struggle to secure financing and may therefore slow down hiring. Mortgage interest rates and market interest rates would also be likely to increase, making it more expensive for consumers to borrow money.

If the US Government Defaults on Its Debt Payment It