Economics · Fiscal Policy & Public Debt
Public debt sustainability is closely linked to growth, interest rates, and fiscal management because:
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1debt matters only for local governments, not for the Union
- 2persistent debt accumulation may create repayment and fiscal pressure over time✓
- 3all public debt is automatically monetized
- 4debt can never affect future policy flexibility
Correct answer
persistent debt accumulation may create repayment and fiscal pressure over time
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