In 1998, the Russian Government Defaulted on Its Bonds

question 38

Multiple Choice

In 1998, the Russian government defaulted on its bonds. According to the open-economy macroeconomic model, this should have

• A)increased Russian interest rates and net exports.
• B)reduced Russian interest rates and net exports.
• C)increased Russian interest rates and reduced Russian net exports.
• D)reduced Russian interest rates and increased Russian net exports.

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Definitions:

Negative Elements

Components or aspects of a situation, proposal, or environment that are harmful or undesirable.

Informative Message

A communication that aims to enlighten or inform the recipient about specific facts or details.

Order of Importance

A method of organizing information or arguments by arranging them from the most significant to the least significant or vice versa.

Shifting Emphasis

The act of changing the focus or importance from one idea or part of a message to another to adjust the perception or impact of the communication.