Governments borrow because:1 pointTheir tax revenues are not enough to cover their expendituresOf unexpected catastrophes like floods, disease, etcThey are expansionist in nature and must finance a war or pay for its defenceOf entitlement programs like public health and employment insuranceAll of the above

Question 2Governments borrow because:1 pointTheir tax revenues are not enough to cover their expendituresOf unexpected catastrophes like floods, disease, etcThey are expansionist in nature and must finance a war or pay for its defenceOf entitlement programs like public health and employment insuranceAll of the above

What are some of the ways governments who have borrowed too much can resolve this problem?1 pointBorrow moreIncrease interest rates to make borrowing more difficultStimulate economic growth through productivity gains and key investmentsb) and c) onlya) and b) and c)

Question 3Except for one, all of the following institutions enable other governments to borrow more at a lower cost than they would have on their own:1 pointThe United NationsThe European Central BankThe World BankThe International Monetary FundThe International Bank for Reconstruction and Development

What causes countries to form a national debt?A.Requiring lawmakers to pass budgets that create a surplusB.Borrowing money repeatedly to cover budget deficitsC.Increasing taxes on the poorest citizens in the countryD.Cutting funding to important programs like the militarySUBMITarrow_backPREVIOUS

Question 4What are some of the signs suggesting that developed countries have borrowed too much money?1 pointNegative interest ratesLarge economies like Italy unable to sustain their banking systemDeflationary conditions that curtail economic growtha) and b) onlya) and b) and c)