During an Especially Difficult Year of Weakening Financial Conditions, the Government

Multiple Choice

During an especially difficult year of weakening financial conditions, the government of Geriva, a European nation, borrows money to meet its legal obligations. However, once the borrowed amount reaches a certain limit, the government is not allowed to borrow more money. This is because the government has hit the _____.

A) fiscal cliff
B) reserve requirement
C) debt ceiling
D) price ceiling