Economics 2281 · O Level · 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 cancelled. What could be a disadvantage for these 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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