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To Honor Their Obligations to Foreign Lenders, Borrowing Nations' Purchases

Question 101

Multiple Choice

To honor their obligations to foreign lenders, borrowing nations' purchases of their own goods and services must be:


A) reduced in order to free up funds for the repayment of their loans.
B) increased in order to raise their employment rates and abilities to repay their loans.
C) reduced in order to increase purchases of goods and services from the lending nations.
D) maintained at constant expenditure rates in order to facilitate planning for loan repayments in the future.

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