Yellen Says Default Would Hurt US International Leadership

The transcript discusses the urgent need for the US Congress to address the debt limit to avoid a default, which could lead to severe economic consequences, including job losses, reduced household incomes, and deteriorating credit markets. A default would also threaten global economic stability and US leadership. Historical instances, like in 2011, show that even the threat of default can harm the economy. Congress has historically raised or suspended the debt limit multiple times, and it is urged to do so again to prevent a crisis.

What is the estimated timeframe for the US government to be unable to meet its obligations if the debt limit is not addressed?

• By early May

• By early July

• By early August

• By early June

What could be a direct consequence of a US default on its obligations?

• Loss of jobs for millions of Americans

• Strengthening of the US dollar

• Increase in global oil prices

• Decrease in global trade

How might a US default affect American businesses?

• Deterioration of credit markets

• Improvement in credit markets

• Reduction in tax rates

• Increase in export opportunities

What historical event is mentioned as a lesson for the potential economic costs of debt limit brinksmanship?

• The 2001 dot-com bubble

• The 1997 Asian financial crisis

• The 2011 debt ceiling crisis

• The 2008 financial crisis

How many times has the US Congress raised or suspended the debt limit since 1960?

• 70 times

• 60 times

• Almost 80 times

• 50 times