A positive relationship is considered to exist between domestic money supply growth and the probability of rescheduling debt.

Question

Quizplus · Accepted Answer

When domestic money supply grows, it can lead to an increase in inflationary pressures, which can make it more difficult for a country to pay back its debts. Therefore, countries with higher domestic money supply growth may have a higher probability of rescheduling their debt.

A Positive Relationship Is Considered to Exist Between Domestic Money