Many Large Developing Countries with Large Dollar-Denominated External Liabilities Experienced

question 19

Multiple Choice

Many large developing countries with large dollar-denominated external liabilities experienced large depreciations of their currencies between 1990 and 2003. What effects, if any, did these depreciations have on these countries' external wealth and their GDPs?

• A) Both their external wealth and their GDPs fell.
• B) Their external wealth fell and their GDPs rose.
• C) Their external wealth rose and their GDPs fell.
• D) The depreciations reduced their external wealth but had no effect on their GDPs.

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Definitions:

Awake

The state of being conscious, alert, and aware of one's surroundings.

Deprivation

The condition caused by a lack of necessary materials, comfort, or necessities for healthy living.

Sleepiness

A state of feeling drowsy or tired, often leading to a desire or need to sleep.

Sleepy

Feeling drowsy, tired, or lacking energy, often leading to the need or desire to sleep.