Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Financial markets are not responsible for government over-borrowing, any more than your bank forces you to take out a car loan unless you want to.
Financial markets are not responsible for government over-borrowing, any more than your bank forces you to take out a car loan unless you want to. It is nevertheless true that investment banks will help governments to borrow if the latter want to. In the end, it is always the citizen who pays the penalty. If we wanted to stop our government from borrowing excessively, what could we do that might actually work in the long term?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started