Compared with the Developed Market Economies That Had Borrowed Heavily

question 35

Multiple Choice

Compared with the developed market economies that had borrowed heavily in the run up to the financial crisis, the emerging market creditors:

• A) suffered much more because of borrowers who defaulted on loans.
• B) suffered much less because the governments in those nations raised taxes.
• C) fared well and recovered rapidly because they restricted borrowing and saving foreign currency reserves.
• D) had to cut government spending and reduce money creation as austerity measures.

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