During the economic downturn of the 1970s, lenders to Latin American countries raised interest rates. This caused Latin American debt to balloon, and these countries were unable to pay their debts. This is an example of:

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This is a clear example of a debt crisis, where a country or region is unable to pay off their debts due to various factors such as high interest rates or economic downturns. In this case, the economic downturn of the 1970s led to lenders raising interest rates, which caused a Latin American debt crisis as these countries were unable to repay their debts.

During the Economic Downturn of the 1970s, Lenders to Latin