Question 35
Public FinanceA huge national debt is an indication that the gold reserves of a nation has
- A.appreciated
- B.decreased
- C.depreciated
- D.stagnated.
Show the answer and explanation
Answer: B (decreased)
Explanation
A country that has piled up a huge debt has usually had to draw on its reserves to pay for imports and debts, so its gold and foreign reserves have decreased.