Debt overhang is the result of:
A)maturity transformation.
B)a vicious cycle of deleveraging.
C)falling unemployment.
D)rising inflation.

Question

Quizplus · Accepted Answer

Debt overhang occurs when an individual or entity has taken on too much debt and is struggling to repay it. This can create a vicious cycle of deleveraging, where reducing debt levels becomes the top priority, resulting in decreased spending and economic activity. Maturity transformation, rising inflation, and falling unemployment do not necessarily lead to debt overhang.

Debt Overhang Is the Result Of