Very high debt burdens can result in
A)fine tuning.
B)automatic stabilizer.
C)the structural deficit.
D)tax smoothing.
E) debt repudiation.

Question

Quizplus · Accepted Answer

When a country has a very high debt burden, one possible outcome is that it may resort to debt repudiation, which means that it chooses not to pay back its debts, either partially or fully. This is a drastic step that can have severe consequences on the country's economic standing and international relationships.

Very High Debt Burdens Can Result in