A country's ability to service foreign debt is highly related to:

Question

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Debt service refers to the amount of money a country must pay annually to service its foreign debt. The higher the debt service, the more difficult it is for a country to service its foreign debt. Therefore, the ratio of debt service to exports (X) is an important indicator of a country's ability to service its foreign debt. Choice C, debt service / X reflects this concept.

A Country's Ability to Service Foreign Debt Is Highly Related