A nation may experience debt-servicing problems because of

Question

Quizplus · Accepted Answer

Pursuit of improper macroeconomic policies (such as excessive government spending or loose monetary policy) can lead to high levels of government debt that becomes difficult to service. Additionally, adverse economic events (such as a recession) can decrease government revenue and make it harder to repay debt. Conversely, inadequate borrowing (not borrowing enough to fund necessary government programs or investments) is not typically a cause of debt-servicing problems.

A Nation May Experience Debt-Servicing Problems Because of