When Countries Have Severe Debt Problems

question 210

Multiple Choice

When countries have severe debt problems:

• A) fiscal policy is an especially good idea.
• B) expansionary fiscal policy can reduce real growth.
• C) it makes no difference for fiscal policy.
• D) they can continue to borrow forever without any adverse consequences.

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Definitions:

Hypothetical Industries

Conceptual or theoretical sectors proposed for the purpose of analysis or discussion, which may not exist in reality.

Buyer-Seller Relationships

The dynamic interaction and association between buyers and sellers, including negotiations, transactions, and ongoing communication for the purpose of exchanging goods or services.

Antitrust Laws

Legislation enacted to prevent anti-competitive practices, monopolies, and to ensure fair competition in an open-market economy.

Economic Objective

A goal that an economy aims to achieve in a specified period, such as economic growth, low unemployment, or price stability.