In the Diagram in Question #13 Above, Where Curve 0ABC

question 23

Multiple Choice

In the diagram in Question #13 above, where curve 0ABC relates the market value of LDC external debt to the face value of the external debt, the range __________ indicates a situation where debt relief or forgiveness for LDCs would reduce the market value of Commercial banks' holdings of LDC debt but by less than the amount of debt forgiven. In this range, any one bank__________.

• A) AB; would not want to forgive debt unless all other banks did also
• B) AB; would be willing to forgive debt even though other banks did not forgive debt
• C) BC; would not want to forgive debt unless all other banks did also
• D) BC; would be willing to forgive debt even though other banks did not forgive debt

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Definitions:

New Deal Coalition

An alliance of diverse voter groups in the United States that supported the Democratic Party because of Franklin D. Roosevelt's New Deal policies in the 1930s and 1940s.

Vietnam War

A prolonged conflict (1955-1975) between Communist forces in North Vietnam and the government of South Vietnam, heavily involving the United States and other allies.

Civil Rights

Civil rights are the rights of citizens to political and social freedom and equality.

Partisan Loyalty

The allegiance or commitment of an individual to a particular political party or ideology.