What was a significant financial impact of the 2008/09 crisis related to national debt?

The choice highlighting the increase in borrowing to bail out banks is significant because it directly addresses the emergency measures many governments took in response to the financial crisis. When the crisis hit, several major financial institutions faced insolvency, threatening systemic collapse. To prevent this, governments intervened by providing bailouts, which often consisted of substantial loans and financial commitments to stabilize these banks and restore confidence in the financial system.

This increase in government borrowing played a crucial role in managing the immediate crisis but also contributed to rising national debts in the long term. The funds needed for these bailouts had to be sourced through borrowing since many governments were already facing budget constraints. This decision highlighted a critical aspect of governmental response during financial crises—balancing immediate economic stability against the long-term fiscal health of a nation.

The other options relate to broader fiscal strategies or economic behavior, but they do not capture the pressing actions taken to mitigate the crisis’s immediate effects as effectively as the increase in borrowing for bank bailouts.