Lamboria Republic is facing a high rate of inflation, and the government debt in the country is also high. As a result, the country's business environment is beginning to deteriorate, and the profits of the business enterprises are hurt. According to this information, Lamboria Republic is facing which of the following type of risk?

Question

Quizplus · Accepted Answer

An economic risk can be defined as the likelihood that economic mismanagement will cause drastic changes in a country's business environment that hurt the profit and other goals of a particular business enterprise. One visible indicator of economic mismanagement tends to be a country's inflation rate. Another is the level of business and government debt in the country.

Lamboria Republic Is Facing a High Rate of Inflation, and the Government