According to some economists, when a country's debt-to-GDP ratio exceeds 90 percent:
A)the interest rate will fall, reducing debt service payments.
B)the government will have to purchase more long-term securities.
C)it will compel citizens to buy more U.S. debt.
D)the government will face financial instability

Question

Quizplus · Accepted Answer

When a country's debt-to-GDP ratio exceeds 90 percent, it is often seen as a threshold beyond which the government may face financial instability. This is because a high debt-to-GDP ratio can indicate that a country might struggle to manage its debt without making significant adjustments to its fiscal policy, potentially leading to issues such as higher interest rates, reduced investor confidence, and difficulties in financing public services.

According to Some Economists, When a Country's Debt-To-GDP Ratio Exceeds