17
QuizMultiple Choice

Cumulative Exam — Cumulative exam

Question 17 • EA Academy Civics 9

Why does carrying a large amount of debt cause people to have less money over time?

Answer
A
Debt requires interest payments.
B
Debt increases how much tax is owed.
C
Debt reduces the amount of net income.
D
Debt is a variable expense.

Explanation

Debt usually requires you to pay interest in addition to repaying the amount borrowed. Those interest payments use money that could otherwise be saved or spent, so a large debt can leave you with less money over time. The best answer is “Debt requires interest payments.”

AI-written and checked against the verified answer.

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