Optimists maintain that China's debt is not a major concern because they can, "simply grow their way out of it." This is not very reassuring because Chinese economic growth rates have been the lowest in a quarter-century. true because Chinese economic growth rates have been even higher than the rate of growth in total debt. irrelevant because the borrowers were in many cases local governments. O possible but only if interest rates rise.
Optimists maintain that China's debt is not a major concern because they can, "simply grow their way out of it." This is not very reassuring because Chinese economic growth rates have been the lowest in a quarter-century. true because Chinese economic growth rates have been even higher than the rate of growth in total debt. irrelevant because the borrowers were in many cases local governments. O possible but only if interest rates rise.
Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter31: The Impacts Of Government Borrowing
Section: Chapter Questions
Problem 17CTQ: Explain how decreased domestic investments that occur due to a budget deficit will affect future...
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Optimists maintain that China's debt is not a major concern because they can, "simply grow their way out of it." This is not very reassuring because Chinese
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