In the analysis of the "debt-relief Laffer curve" pertaining to the external debt of a developing country,

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The debt-relief Laffer curve suggests that there is a point where forgiving some portion of a developing country's external debt can actually benefit both the debtor country and the lenders to the country. This is because the reduced debt burden may stimulate economic growth and increase the country's ability to pay back its remaining debts. However, this only occurs in a specific portion of the curve where the debt burden is not too high or too low. Therefore, option A is incorrect because the market value of the debt may be greater or lower than the face value of the debt. Option B is incorrect because it does not capture the full range of possibilities. Option D is also incorrect because it is too extreme of a statement.

In the Analysis of the "Debt-Relief Laffer Curve" Pertaining to the External