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

Question 55

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.

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