Question Tag: Debt Accumulation

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PSAF – May 2018 – L2 – Q6 – Fiscal Policy and Public Finance

Defines public debt and identifies factors contributing to the accumulation of public debt in developing countries.

“The consequences arising from the continual accumulation of public debts in developing countries may discourage growth in such economies.”

Required:

a. Explain the term “public debt.” (5 Marks)

b. Write brief notes on FOUR factors responsible for the accumulation of public debt in developing countries. (10 Marks)

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PSAF – May 2018 – L2 – Q6 – Fiscal Policy and Public Finance

Defines public debt and identifies factors contributing to the accumulation of public debt in developing countries.

“The consequences arising from the continual accumulation of public debts in developing countries may discourage growth in such economies.”

Required:

a. Explain the term “public debt.” (5 Marks)

b. Write brief notes on FOUR factors responsible for the accumulation of public debt in developing countries. (10 Marks)

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