Recently the Greek government had large deficits and people became worried about Greece's ability to continue to make payments on its debt. Which of the these events raise a country's interest rates?

Question

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A country's interest rates are raised when there are concerns about the government's ability to pay back its debt because investors demand higher rates of return for taking on additional risk. An increase in the budget deficit also indicates that the government may struggle to handle its debt obligations in the future, which can further increase interest rates as investors become more hesitant to lend to the country. Therefore, the combination of increased concerns about debt repayment and a large budget deficit is likely to raise interest rates.

Recently the Greek Government Had Large Deficits and People Became