In one to two sentences, explain how unchecked debt could affect investors in the U.S. government debt, and how that could affect the cost of borrowing.(2 points)
Unchecked debt could result in a decrease in investor confidence in the ability of the U.S. government to repay its obligations, leading to an increase in the interest rates demanded by investors, which would increase the cost of borrowing for the government.
Unchecked debt could lead to a decrease in investor confidence in U.S. government debt, causing them to demand higher interest rates to compensate for the increased risk, thereby increasing the cost of borrowing for the government.
Unchecked debt could lead to inflation and diminishing confidence in the U.S. government's ability to repay its debt, causing investors to demand higher interest rates on government bonds, thereby increasing the cost of borrowing for the U.S. government and potentially impacting the broader economy.
