When a Nation Is in a Debt Crisis, the Government's

question 222

Multiple Choice

When a nation is in a debt crisis, the government's level of debt is so high that

• A) monetary policy is ineffective.
• B) the government is unable to find willing lenders so it can continue borrowing.
• C) it can only be solved with a fiscal stimulus of lower taxes and more government spending.
• D) other countries will be unwilling to buy goods and services from the nation.