Economics 0455 · IGCSE · Differences in economic development between countries

Differences in economic development between countries — practice question

Some people believe that the debts and interest payments owed by the world’s poorest countries ought to be written off. What could be one disadvantage for the poorest countries if this happened?

  • AInternational banks might be less willing to give loans to poor countries.
  • BInterest payments to the lenders would fall.
  • CThe standard of living of people in the poorest countries would fall.
  • DTrade between the poorest countries and the rest of the world would increase.

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