If a country's external debt is 105 percent of its Gross National Income (GNI) :
A) the debt is so small that it should have no effect on the economy.
B) the debt should be easily repaid since it only requires an increase in GNI of 5 percent.
C) the country owes 105 times as much to foreign lenders as its economy produces in one year.
D) the value of one year's worth of the economy's output is not enough to satisfy the country's debt to foreign lenders.
Correct Answer:
Verified
Q91: A $10 billion increase in the purchase
Q92: Which of the following statements about the
Q93: Money owed by borrowers in one country
Q94: Which of the following statements about debt
Q95: Which of the following statements about external
Q97: Paying off external debt has been particularly
Q98: The opportunity cost to a country repaying
Q99: The opportunity cost to a country of
Q100: Which of the following statements is true?
A)
Q101: To honor their obligations to foreign lenders,
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents