Short reading: This case describes the economic crisis in Iceland in 2008.In the years prior to the crisis, Iceland's banks grew through international expansion financed by debt.When, because of the global financial crisis in 2008, the banks were unable to refinance their debt, the banks went into bankruptcy sending the economy into a nosedive.To stem the fall, Iceland turned to the IMF for assistance.Thanks to the IMF and other foreign loans, Iceland was able to begin to turn its economy around.The low value of the krona helped spark an export-led economic recovery. In 2013, Iceland's economy grew at 4 percent and its unemployment rate continued to fall.

I need help on the question below

• What type of exchange rate system does Iceland follow?Explain how this system helped the country to recover from the 2008-2009 global financial crisis.

• Biden's$1.9 trillion pandemic rescue package has pushed U.S. debt to levels (debt as a percent of GDP) not seen since World War II. Why is this a problem?Why isn't it a problem?