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Author Question: The accumulation of international debt increased the debt service requirements of the indebted ... (Read 103 times)

karateprodigy

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The accumulation of international debt increased the debt service requirements of the indebted countries. After the debt crisis began, this caused
 
  A) the adoption of expansionary policies to return to growth.
  B) large capital inflows to service the debt.
  C) the adoption of strongly contractionary policies to reduce consumption and government deficits.
  D) an intensification of industrial policies targeted on import substitutes.

Question 2

Suppose that Mexico has external debt, and the value of the country's currency, the peso, falls. Which of the following is true?
 
  A) The peso value of the loans will decrease as well.
  B) Mexico will find it easier to pay off its external debt.
  C) Mexico will declare bankruptcy.
  D) The cost of debt service will be higher.


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wshriver

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karateprodigy

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Reply 2 on: Jun 30, 2018
YES! Correct, THANKS for helping me on my review


nothere

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Reply 3 on: Yesterday
Excellent

 

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