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How does the federal debt impact the economy? It can slow growth by decreasing the cost to borrow money. It can slow growth by discouraging investment. It can slow growth by preventing inflation.
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How does the federal debt impact the economy?

It can slow growth by decreasing the cost to borrow money.
It can slow growth by discouraging investment.
It can slow growth by preventing inflation.

User Funzo
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the answer here would be the second option, because the country has a large debt, it would not be a good idea to invest in anything because it  will not be able to pay back the loan
User Jocko
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It can slow growth by discouraging investment if debt gets too large. Interest rates might rise because of lack of demand for treasury bonds (T-bills).
User Charith Nidarsha
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