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Author Question: The S-curve is used to illustrate a. the typical path taken by the current account over time. b. ... (Read 31 times)

daltonest1984

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on: Jun 30, 2018
The S-curve is used to illustrate
 
  a. the typical path taken by the current account over time.
  b. economic fluctuations in the economy.
  c. the typical growth path of a developing economy.
  d. the existence of multiple equilibria.

Question 2

Although Africa's debt/GNP ratio is larger than Latin America's, the debt-service burden is lighter. Explain this and relate it to changes in the nature of development lending in the 1970s.
 
  What will be an ideal response?


jessicaduplan

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Reply #1 on: Jun 30, 2018
Answer to Question 1

D

Answer to Question 2

The key issue is Africa's continued reliance on lower-interest aid, while development of the Euromarket led Latin American countries to seek higher-interest loans that did not come with aid-type restrictions.


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