Final answer:
A large international debt may cause a government to impose wage controls to reduce spending.
Step-by-step explanation:
A large international debt may cause a government to impose wage controls. When a government has a high level of debt, it often faces financial constraints and may need to implement measures to reduce spending. Wage controls can be one way for the government to control costs by limiting the amount it pays to employees. Rising interest rates, as a consequence of high debt levels, can create pressure on the government, leading to spending cuts and tax increases, which are politically challenging decisions that can have a contractionary impact on aggregate demand in the economy. Moreover, high debts can create uncertainty in financial markets and a country might resort to inflation to reduce the real value of the debt, which can negatively affect real wealth and shake confidence in the country's financial management.