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.
Answer: B
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China's high net exports must be balanced by:
A. low net capital outflows. B. high net capital outflows. C. lownet imports. D. high net capital inflows.
A program of protection that results in preserving jobs in certain industries
A. raises average productivity in all sectors of the economy. B. does so at very high cost to consumers of the products from those industries. C. is an efficient way to preserve employment and is cheaper than other forms of maintaining full employment. D. is an effective way of encouraging innovation and improvement in production.