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After the 2008 Financial Crisis, Interest Rates on Italian Debt

Question 49

Multiple Choice

After the 2008 financial crisis, interest rates on Italian debt increased because:


A) they were approaching the zero bound, so the central bank raised them.
B) the Italian government revalued the lira.
C) Italy imposed trade sanctions on Iran.
D) the Italian economy was growing too slowly to generate enough tax revenue to repay its public debt.

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