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A Small Amount of International Debt Can Become a Heavy

Question 163

Multiple Choice

A small amount of international debt can become a heavy burden on a developing economy if


A) interest payments are a large percentage of export revenues
B) a trade surplus develops
C) the economy grows rapidly
D) difference between inflows and outflows on the country's current account
E) total borrowings exceed the $50 million level fixed by the IMF

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