Which consequences can happen when a nation has a large federal debt? A. The Fed may lose its ability to regulate banks. B. The federal government may be unable to fully find all its programs. C. The federal government may stop insuring deposits. D. The treasury department may lose its control over the money supply.

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05-04-2022
Social Studies

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Which consequences can happen when a nation has a large federal debt? A. The Fed may lose its ability to regulate banks. B. The federal government may be unable to fully find all its programs. C. The federal government may stop insuring deposits. D. The treasury department may lose its control over the money supply.

Sagot :

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Jayilych4realidn Jayilych4realidn · Answer 1 · 2022-04-11T04:12:29-04:00

One of the consequences that can happen when a nation has a large federal debt is that the federal government may be unable to fully find all its programs.

What is Federal Debt?

This refers to the total amount owed by a government to security holders and this is a result of budget deficits.

Hence, we can see that when this federal debt becomes large, the economy would suffer as a result of the fact that the government cannot back many things and this would result in the government being unable to fully find all its programs.

Sagot :

What is Federal Debt?

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