Other Things Being Equal, the Benefit-Cost-Risk Trade-Off Is Likely to Be

Multiple Choice

Other things being equal, the benefit-cost-risk trade-off is likely to be most favorable in

A) politically unstable developing nations that operate with a mixed or command economy.
B) nations where there is a dramatic upsurge in either inflation rates or private-sector debt.
C) politically stable developed and developing nations that have free market systems.
D) developing nations where speculative financial bubbles have led to excess borrowing.