Question

Which of the following is the most plausible effect of nearing debt ceiling on the interest rates paid by Americans?

A. None, it will only effect interest rates paid by foreigners.

B. Americans will pay lower interest rates.

C. Americans will pay higher interest rates.

Answer 1

Answer: C. Americans will pay higher interest rates.

Explanation:

The most plausible effect of nearing debt ceiling on the interest rates paid by Americans is that Americans will pay higher interest rates.

Since the debt ceiling is the method used to curtail and limit the amount of debt that the government of a particular country can borrow, the government has to look for other means to make money and will therefore make Americans pay higher interest rates.