Question

What is the main problem with reducing government spending as a way to pay down the national debt?

Answer 1

The correct answer is "D".

Government spending is critical for the creation of jobs in the country. As national projects like interstate roads and infrastructure normally involve great investments generate that create many vacant positions. This means more jobs for citizens and consumers in the country will eventually increase. This also means that there will be an increase in the GDP of the country which means that there will be more liquidity in the government in order to pay the debt.