Multiple Choice
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
Correct Answer:
Verified
Q5: Foreign lenders are often reluctant to make
Q6: Government borrowing tends to _ in recessions
Q7: An economy has an output gap of
Q8: A 'Sudden Stop' is defined as<br>A) A
Q9: An economy has potential output of 100,actual
Q11: If annual GDP growth is .10,the interest
Q12: If annual GDP growth is .10,the interest
Q13: A credit spread is<br>A) The cost of
Q14: In a sovereign debt restructuring,a 'haircut' is<br>A)
Q15: The tendency for developing countries to be