Understanding the National Debt Crisis

What is the national debt primarily composed of?

• Money borrowed from other countries

• Accumulated deficits over the years

• Excessive military spending

• State-level debts

Which branch of the U.S. government is responsible for managing the national debt?

• Legislative Branch

• Federal Reserve

• Judicial Branch

• Executive Branch

When were the first debt bonds issued in the United States?

• 1791

• 1917

• 1939

• 1974

What does raising the debt ceiling allow Congress to do?

• Increase taxes

• Borrow more money

• Reduce spending

• Print more currency

What was the purpose of the 1974 Budget Empowerment Control Act?

• To give Congress more control over the budget

• To eliminate the national debt

• To reduce taxes for the wealthy

• To increase military spending

What was the Gart Rule designed to prevent?

• Negotiations over the debt ceiling

• Government shutdowns

• Excessive military spending

• Tax increases

What significant change occurred during the Republican Revolution of 1995?

• Increase in military spending

• Removal of the Gart Rule

• Introduction of new tax laws

• Implementation of universal healthcare

What was a major consequence of the 2011 debt ceiling crisis?

• Increase in national debt

• Credit downgrade for the U.S.

• Introduction of new tax laws

• Government shutdown

What does the 14th Amendment say about public debt?

• It should be paid off immediately

• Its validity shall not be questioned

• It should be reduced annually

• It can be increased by the President

What is a potential risk of not raising the debt ceiling?

• Improved credit rating

• Increase in taxes

• Economic instability

• Decrease in national debt