Which of the following is not a potential cost faced by a defaulting sovereign nation
A) Loss of reputation in international capital markets
B) Inability to borrow in international capital markets for some time
C) Losses to domestic holders of your debt
D) Losses to foreign holder of your debt
E) Inability of private sector borrowers to access credit internationally
Correct Answer:
Verified
Q4: A structural budget deficit is
A) The budget
Q5: If annual GDP growth is .10,the interest
Q6: Inflation can reduce the burden of debt
Q7: If annual GDP growth is 2%,the interest
Q8: Most serial sovereign defaulters (countries that have
Q10: The Intertemporal Budget Constraint means
A) The Government
Q11: A credit spread is
A) The cost of
Q12: Foreign lenders are often reluctant to make
Q13: An economy has an output gap of
Q14: In a sovereign debt restructuring,a 'haircut' is
A)
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