If a country has a burden of debt it cannot sustain it can ?
Correct answer: D. any of the above
- A. reschedule debt
- B. get a loan from an international organization
- C. default on the loan
- D. any of the above
Explanation
A country facing unsustainable debt may restructure or reschedule payments, seek new official financing, or ultimately default. Since each is a possible response, “any of the above” is the best choice.
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About Public Finance
Government revenue and expenditure are analysed through taxation, public borrowing, budgets, subsidies, transfers and public debt. The topic explains how fiscal policy affects resource allocation, income distribution, economic stability and growth, while distinguishing direct from indirect taxes, progressive from regressive taxation, and public goods from goods supplied by private markets.
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