The two reasons why bankruptcy is a false concern about the public debt are
A) government spending and taxation.
B) reﬁnancing and taxation.
C) investment and reﬁnancing.
D) saving and investment.

Question

Quizplus · Accepted Answer

Refinancing allows governments to roll over their debt, essentially borrowing anew to pay off existing debt, which can prevent bankruptcy. Taxation provides governments with a steady income stream to service their debt, further mitigating the risk of bankruptcy.

The Two Reasons Why Bankruptcy Is a False Concern About