MC7 What is the impact of high levels of public debt on the Indian economy?
A. Reduced government spending
B. Increased borrowing costs
C. Reduced economic growth
D. All of the above
Answer:D
MC7 What is the impact of high levels of public debt on the Indian economy?
A. Reduced government spending B. Increased borrowing costs C. Reduced economic growth D. All of the above
Explanation: High levels of public debt can have a range of impacts on the Indian economy. When the government is heavily indebted, it may need to reduce spending in order to meet its debt obligations. Additionally, high levels of debt can increase borrowing costs, which can make it more expensive for the government and businesses to borrow money. Finally, because high levels of debt can be seen as a sign of economic instability, it can reduce confidence in the economy and lead to reduced economic growth.