The 1982 debt crisis was caused in part by:
A)falling world interest rates.
B)a rapid increase in cheap imports from developing countries.
C)falling developing country exports and high real interest rates.
D)rising commodity prices.

Question

Quizplus · Accepted Answer

The debt crisis of 1982 was caused in part by falling developing country exports and high real interest rates. This led to difficulties in servicing their external debt, leading to defaults and the need for bailouts from international organizations like the IMF. Falling world interest rates (A) would have actually made it easier for developing countries to service their debt. Rapid increase in cheap imports (B) and rising commodity prices (D) may have had some impact on individual countries, but they were not major factors in the overall debt crisis.

The 1982 Debt Crisis Was Caused in Part By