QuestionMay 24, 2025

Read each question and choose the best answer. Which of the following is considered a problem associated with a large national debt? A. hyperinflation B. low interest rates C. foreign ownership of debt D. little demand for government bonds

Read each question and choose the best answer. Which of the following is considered a problem associated with a large national debt? A. hyperinflation B. low interest rates C. foreign ownership of debt D. little demand for government bonds
Read each question and choose the best answer.
Which of the following is considered a problem associated with a large national debt?
A. hyperinflation
B. low interest rates
C. foreign ownership of debt
D. little demand for government bonds

Solution
4.5(262 votes)

Answer

C. foreign ownership of debt Explanation 1. Identify the implications of large national debt Large national debt can lead to increased interest payments, potential loss of investor confidence, and reliance on foreign investors. 2. Analyze each option A. Hyperinflation is not directly caused by national debt but rather by excessive money printing. B. Low interest rates are typically a tool to stimulate the economy, not a direct result of high national debt. C. Foreign ownership of debt can be a concern as it may lead to economic influence by foreign entities. D. Little demand for government bonds would likely increase interest rates, not a typical issue with high national debt.

Explanation

1. Identify the implications of large national debt<br /> Large national debt can lead to increased interest payments, potential loss of investor confidence, and reliance on foreign investors.<br /><br />2. Analyze each option<br /> A. Hyperinflation is not directly caused by national debt but rather by excessive money printing.<br /> B. Low interest rates are typically a tool to stimulate the economy, not a direct result of high national debt.<br /> C. Foreign ownership of debt can be a concern as it may lead to economic influence by foreign entities.<br /> D. Little demand for government bonds would likely increase interest rates, not a typical issue with high national debt.
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