Government Austerity Measures Are More Likely to Resolve a Sovereign

question 10

Multiple Choice

Government austerity measures are more likely to resolve a sovereign debt crisis if ________.

• A)the real interest rate falls along with inflation
• B)the fiscal multipliers are especially large
• C)no aid is available from other countries,so the government is not tempted to abandon the austerity plan
• D)citizens,also,adopt austerity

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Definitions:

Psychological Tension

A state of mental or emotional strain resulting from demanding circumstances.

Posttraumatic Stress Disorder

A psychiatric disorder that occurs in people who have experienced or witnessed a traumatic event and exhibit symptoms such as flashbacks, nightmares, and severe anxiety.

Depressive Disorders

A group of conditions characterized by persistent feelings of sadness, hopelessness, and a lack of interest or pleasure in activities.

Persistent Sad

A prolonged state of sadness that may indicate a mood disorder or depression.