Whenever the government implements fiscal policy, whether it be through higher spending or lower taxes, we have to pay for the policy change eventually. This can be done either through higher future taxes or by borrowing money and paying back the debt later with interest. However, borrowing can lead to excess debt. What happens when a country fails to pay off their debts? In particular, what happens when a country with high debt tries to perform even more expansionary fiscal policy? Edit View Insert Format Tools Table 12pt v Paragraph B J U A & TV