What does DC mean in INTERNATIONAL BUSINESS

The purpose of the debt-ceiling is to provide a limit on how much a country is allowed to borrow from other sources in order to finance its operations and activities. It helps prevent governments from overspending and running up massive national debts that can lead to disastrous consequences for both the economy and citizens.

The debt ceiling is generally set by legislative bodies, typically at the federal level. It must be adjusted periodically in order to keep up with inflation and shifts in economic activity.

Generally, budgeting and finance departments within government organizations are responsible for monitoring the debt-ceiling and proposing changes when needed. These recommendations are then subject to debate before any changes are ultimately decided upon by legislative bodies.

If a country exceeds its catastrophic level — which is usually close but slightly lower than its total debt limit — then it can risk defaulting on loans or having its credit rating lowered, which further impacts its ability to borrow more funds at affordable rates. In extreme cases, it could even lead to major economic turmoil or political crisis for those involved.

Raising or lowering the debt ceiling can have an impact on citizens in terms of their taxes, cost of living expenses, as well as jobs availability depending on how much it affects overall spending by government entities. In general, raising it above catastrophic levels should result in fiscal stimulus which tends to benefit citizens while reducing job availability when lowering limits too aggressively could put strain on public services such as healthcare & education systems due lack of funding support by government entities etc.