During the economic downturn of the 1970s, lenders to Latin American countries raised interest rates. This caused Latin American debt to balloon, and these countries were unable to pay their debts. This is an example of: Group of answer choices a. the interaction between monetary policy and fiscal policy. b. an automatic stabilizer. c. crowding out. d. a debt crisis.

During the economic downturn of the 1970s, lenders to Latin American countries raised interest rates. This caused Latin American debt to balloon, and these countries were unable to pay their debts. This is an example of: Group of answer choices a. the interaction between monetary policy and fiscal policy. b. an automatic stabilizer. c. crowding out. d. a debt crisis.

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter14: Macroeconomic Policy: Tradeoffs, Expectations, Credibility, And Sources Of Business Cycles

Section: Chapter Questions

Problem 5E

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