Consider the Following Hypothetical Data for a Developing Country Does This Country Have a Debt Crisis? What Additional Pieces

question 15

Short Answer

Consider the following hypothetical data for a developing country: $\begin{array}{ccccc}\text { Year } & \text { Total Debt (\$ bn) } & \text { Debt/Export (\%) } & \text { GDP Growth } & \text { Inv. Growth } \\\hline 1 & 6 & 134 & 0.6 \% & -1.0 \% \\2 & 6.5 & 147 & 2.9 \% & 1.1 \% \\3 & 7 & 159 & 5.1 \% & 1.6 \% \\4 & 7.5 & 174 & 6.4 \% & 2.4 \% \\5 & 8 & 198 & 1.1 \% & -0.6 \% \\\hline\end{array}$ Does this country have a debt crisis? What additional pieces of quantitative or qualitative evidence(if any)would help you to decide?

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Definitions:

Capitalism

An economic system characterized by private ownership of the means of production, the operation for profit, and market competition.

Protestant Work Ethic

A concept emphasizing hard work, discipline, and frugality as a result of one's faith, historically linked to Protestantism and seen as a factor in the economic success of individuals and societies.

Nonmaterial Culture

Aspects of culture that are not physical, including beliefs, values, norms, and languages.

Ideas

Mental concepts or thoughts that can be based on observations, experiences, or theoretical insights.