When a country internationalizes its debt, it:
A)reduces current consumption but increases future consumption.
B)increases current consumption but reduces future consumption.
C)reduces both current and future consumption.
D)increases both current and future consumption.

Question

Quizplus · Accepted Answer

When a country internationalizes its debt, it borrows money from foreign lenders, which allows it to increase its current consumption. However, this comes at the cost of future consumption because the country will have to repay the debt with interest, reducing the resources available for future consumption.

When a Country Internationalizes Its Debt, It