Can a Large Public Debt Cause a Nation to Go

question 34

Essay

Can a large public debt cause a nation to go bankrupt? Explain.

---

Definitions:

Gold Reserves

Quantities of gold held by central banks or governments to back their currencies and provide security for their financial systems.

J.P. Morgan

An influential American banker and financier who played a significant role in the development of the United States' financial system by financing railroads and helping to organize U.S. Steel, General Electric, and other major corporations.

Banking Syndicate

A group of banks that come together to jointly finance a large project or loan, sharing the risk.

Economic Depression

A long-term downturn in economic activity characterized by high unemployment, low consumer spending, and a decline in industrial output.