Which of the following is NOT a characteristic of a foreign debt crisis?
A) Widening current account deficit
B) Excessive expansion of domestic borrowing
C) Low relative price inflation rates
D) Asset price inflation

Question

Quizplus · Accepted Answer

Low relative price inflation rates are not a characteristic of a foreign debt crisis. Instead, high inflation rates are often a common feature of such crises. A widening current account deficit, excessive expansion of domestic borrowing, and asset price inflation are all signs of a potential foreign debt crisis.

Which of the Following Is NOT a Characteristic of a Foreign