Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
what are the differences in debt sustainability under the heterodox/MMT and Neoclassical/orthodox approaches?
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Step 1
Debt sustainability refers to the ability of a borrower to meet its debt obligations in a timely and orderly manner without requiring a restructuring or default on its debt. This involves being able to generate enough income or resources to service the debt while also maintaining a level of economic growth that allows the borrower to continue to meet its debt obligations over time.
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