If Foreign Investors Believe That the Algerian Government Will Default

Multiple Choice

If foreign investors believe that the Algerian government will default on their debt,what might happen?

A) a decrease in Algerian interest rates and an increase in Algerian net capital outflow
B) an increase in both Algerian interest rates and net capital outflow
C) a decrease in both Algerian interest rates and net capital outflow
D) an increase in Algerian interest rates and a decrease in Algerian net capital outflow