Ceteris Paribus, If the Volatility of an Emerging Market Economy's

question 87

Multiple Choice

Ceteris paribus, if the volatility of an emerging market economy's GDP increases:

• A) it will not be able to borrow as much as before at the world interest rate on risk-free debt.
• B) it will be able to borrow more than before at the world interest rate on risk-free debt.
• C) it can borrow the same amount as before at the world interest rate on risk-free debt.
• D) its risk premium falls.

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Definitions:

Standing to Sue

The legal right to bring a lawsuit to court, based on having a direct and personal interest in the outcome of the litigation.

Moral Obligation

A duty or commitment to act in a manner that is considered morally right or beneficial to others.

Jurisdictional Authority

The legal power or right of a court or other entity to hear cases and make decisions based on geographic location or specific legal issues.

In Personam Jurisdiction

The legal authority of a court to make a decision affecting a particular person's rights.