Is there a potential problem if governments continually finace goods and services with borrowed money ?

yes

Explanation:

This is Na use the government will earn its money 2 ways. 1. Form trading and selling, 2. Taxing. In the us government taxing is constitutionally illegal, however we are still taxed. But when a government is trying to fund multiplul things like military, paying employees of the military and government, and more. The more. Things needed to be funded, the more money needed, therefore more taxing will commence. Hope it helps!

b or c ( this is because my answer is short so just ignore it)

punish germany and keep it weak,