Question

Is there a potential problem if governments continually finance goods and services with borrowed money?

A.
Yes, because it is unconstitutional for governments to borrow money.
B.
Yes, because eventually the debt must be repaid with interest.
C.
No, because governments can accumulate debt without limit.
D.
No, because it is always easier to pay off the debt later.

Answer 1

B

Step-by-step explanation:

The government doesn't have a blank check. The debt will have to be repaid with interest.