Because their economies have lower growth, the cost of debt in industrialized countries is much higher than the cost of debt in many less developed countries.

Question

Quizplus · Accepted Answer

This statement is false. Generally, the cost of debt in less developed countries is higher due to their perceived higher risk for lenders. Industrialized countries usually have lower borrowing costs due to their stable economies and high creditworthiness.

Because Their Economies Have Lower Growth, the Cost of Debt