When a Nation Has a High Debt/GDP Ratio,that Nation Generally

question 34

Multiple Choice

When a nation has a high debt/GDP ratio,that nation generally will

• A)require high taxes just to pay interest on the debt.
• B)be able to borrow funds at relatively low real interest rates.
• C)find that its bonds are attractive to international investors seeking low-risk investments.
• D)want to increase spending in order to gain the confidence of international investors.

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