Economic crises struck developing countries during the early 1980s's in large part as a consequence of governments' decision to borrow to finance their budget and current account deficits.

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This statement is true. Many developing countries borrowed heavily during the 1970s and early 1980s, often to finance large infrastructure projects or to fund subsidies for basic goods. However, as global interest rates rose and commodity prices fell, these countries found it increasingly difficult to service their debts. This led to a series of economic crises and debt defaults throughout Latin America, Africa, and Asia.

Economic Crises Struck Developing Countries During the Early 1980s's in Large