Sovereign debt crises:
a. always occur when debt/GDP ratios reach a specific point.
b. mean that the optimal budget deficit is zero.
c. can lead to foreign capital flight.
d. can lead to exchange rate depreciation.
e. both c and d.
E
You might also like to view...
When the government's expenditures exceed its tax revenue, the budget
A) has a deficit and the national debt is increasing. B) is balanced and the national debt is increasing. C) has a surplus and the national debt is increasing. D) has a deficit and the national debt is decreasing. E) None of the above because by law the government's expenditures cannot exceed its tax revenue.
Which of the following sayings best represents the concept of opportunity costs?
a. "A glass can be half empty or half full." b. "When in Rome, do as the Romans do." c. "There is no such thing as a free lunch." d. "No taxation without representation." e. "What's up?"