Which of the following is a reason why Great Britain and the United States could finance their deficits by borrowing private money since the early 1970s?
A)rapid development of global capital markets
B)shortage of International Monetary Fund grants available for disbursal
C)high interest rate charged by the International Monetary Fund
D)establishment of currency boards in these countries
E)decline of the Bretton Woods system

Question

Quizplus · Accepted Answer

The rapid development of global capital markets since the early 1970s has made it easier for Great Britain and the United States to borrow private money to finance their deficits. This is because there are more investors and lenders who are willing to lend money to these countries, and the competition between them has made the cost of borrowing relatively low.

Which of the Following Is a Reason Why Great Britain