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Debt Crisis : Following the lecture in class on debt crises , use a simple diagram...

Debt Crisis : Following the lecture in class on debt crises , use a simple diagram to sho when a country should pay back its sovereign debt and when it should default.
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Sovereign debt refers to the amount that the government of a country owe to outside creditors.It is similar to national debt. Sovereign debt can also be termed as summation of the government total annual deficits.the country should repay its debt upon fulfill of specified time period as per norms.Despite having chances of slow growth of economy the government needs to have a cut on its spending and repay its debt.Government repays its debt after having its income from taxes, sometime taxes are increased.also government takes debt from public by issuing bonds also.
Sovereign debt are defaulted mainly during situation of war or recession.goverment at times take debt from foreign countries.If a country haa too much of debt and has a chance of defaulter then it faces higher rates of interest.public debt are better or safe option for the government.public debts help in improving the standards for living in the country.governments defaults in its debt repayment when the growth of economy is slow and also GDP is low.

L A USA 0 2010 1995 2000 2005 rig: Aeneral Savergn dekt.

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