If a developing country is a net debtor, this will always lead to an exchange rate shock.

Name: If a developing country is a net debtor, this will always lead to an exchange rate shock.
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Question

Quizplus · Accepted Answer

Being a net debtor does not automatically lead to an exchange rate shock. Exchange rate fluctuations can be influenced by a variety of factors including economic policies, investor perceptions, and global financial conditions, not just a country's debt status.

If a Developing Country Is a Net Debtor, This Will