Microeconomics: Principles, Problems, & Policies, 20th Edition

Published by McGraw-Hill Education
ISBN 10: 0077660811
ISBN 13: 978-0-07766-081-9

Chapter 5 - Government's Role and Government Failure - Discussion Questions - Page 125: 5

Answer

The answer is below.

Work Step by Step

The debt ceiling must be raised by congress periodically to keep the government functioning. After all, if the debt ceiling were not raised, the government would have no money to pay its employees, so it would be dysfunctional. Because of the ability to raise the debt ceiling, the U.S. government can owe other entities an increasingly large amount of money.
Update this answer!

You can help us out by revising, improving and updating this answer.

Update this answer

After you claim an answer you’ll have 24 hours to send in a draft. An editor will review the submission and either publish your submission or provide feedback.