US National Debt and its Impact

What was the US national debt as of early September 2023?

• $33 trillion

• $25.7 trillion

• $7 trillion

• $300 billion

What is the majority of the US national debt held by?

• Intragovernmental debt holdings

• The public

• Foreign countries

• Private corporations

What is the purpose of the national debt?

• To burden the current generation with taxes

• To add dollars to the broader economy

• To subtract dollars from the economy through taxation

• To keep track of government spending

Why can't the US get a handle on its national debt?

• Lack of political action

• Lack of resources

• Lack of borrowing options

• Lack of public support

What are government securities used for?

• Immediate consumption

• Long-term investments

• Emergencies

• Trading with other countries

Why is the debt to GDP ratio important?

• It determines the stability of the economy

• It determines the interest rates

• It determines the government's borrowing capacity

• It determines the inflation rate

What happens when interest rates rise?

• The government pays less interest on its debt

• The government pays more interest on its debt

• The debt becomes easier to service

• The debt becomes harder to service

What is the purpose of debt for the economy?

• To burden future generations

• To finance large initiatives

• To increase interest rates

• To decrease economic activity

What is the concern with continuously borrowing for immediate consumption?

• It leads to long-term financial deterioration

• It increases economic growth

• It stabilizes the debt to GDP ratio

• It reduces interest rates

How does the government's budget differ from a household budget?

• The government can never afford to pay its bills

• The government can always afford to pay its bills

• The government's budget is not affected by debt

• The government's budget is similar to a household budget