In 2011, an article in the Economist argued that "heavy public debt risks more than just crowding out private investments It can, in the extreme, bring on insolvency." Source: "Running Out of Road," Economist, June 16, 2011. What does the article mean by "heavy public debts"? OA. A total value of government bonds outstanding that is large relative to GDP OB. High amounts of negative equity among households and firms OC. Values of borrowing by households that are large relative to household incomes OD. Government expenditures that far exceed government tax revenue in a given year How might heavy public debts lead to insolvency?

In 2011, an article in the Economist argued that "heavy public debt risks more than just crowding out private investments It can, in the extreme, bring on insolvency." Source: "Running Out of Road," Economist, June 16, 2011. What does the article mean by "heavy public debts"? OA. A total value of government bonds outstanding that is large relative to GDP OB. High amounts of negative equity among households and firms OC. Values of borrowing by households that are large relative to household incomes OD. Government expenditures that far exceed government tax revenue in a given year How might heavy public debts lead to insolvency?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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