Local governments unable to carry large levels of debt

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Reference no: EM131084560

Why are state and local governments unable to carry large levels of debt?

a. they are constrained by their economic capacity to service their debt.

b. they cannot levy income taxes.

c. they all have upper limit restrictions on the rate at which they can tax.

d. federal legislation prohibits it, because federal funds will ultimately have to finance a state or municipal bail out.

Reference no: EM131084560

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