External Debt Rises from 5 Percent of GDP to Over

Multiple Choice

External debt rises from 5 percent of GDP to over 30 percent of GDP. This increase in external debt is:

A) not a potential problem because repayment does not imply a net reduction in the income of an average citizen.
B) not a potential problem because government debt differs from the debt of individuals.
C) a potential problem because government debt is no different from the debt of individuals.
D) a potential problem because repayment implies a net reduction in the income of an average citizen.