If a Government Issues an Excessive Amount of Debt Then

question 54

Multiple Choice

If a government issues an excessive amount of debt then

• A) it doesn't matter because the national debt need never be paid back.
• B) the financial markets will perceive that the risk of the government concerned defaulting on its loans has risen and will demand a higher rate of interest to lend to that government.
• C) the financial markets will perceive an increased opportunity for profit and reduce the rate of interest demanded to lend to that government.
• D) other governments are likely to do the same.

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Definitions:

Upper Class

A social group that is at the top of a societal hierarchy, typically possessing the most wealth, influence, and power.

Social Divisions

Distinctions made between people based on social categories such as class, race, gender, and ethnicity, which often lead to unequal treatment and opportunities in society.

Cultural Appropriation

The adoption or use of elements of one culture by members of another culture, which can be controversial when it involves a dominant culture borrowing from minority cultures without permission, understanding, or respect.

Palestinian Kaffiyeh

A traditional black and white scarf that symbolizes Palestinian heritage and nationalism.