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Which of the following is not a potential problem faced by developing nations that borrow from

Question

Which of the following is not a potential problem faced by developing nations that borrow from

abroad?

Select one:

a. Foreign borrowers may place conditions on loans that effectively transfer some control over resource-allocation decisions away from domestic residents.

b. Interest payments on the debt obligations are transfers from domestic residents to foreign residents.

c. Funds obtained from foreign borrowing are often used to finance acquisitions of capital resources.

d. Foreign shorter-term investment and loans can be highly volatile.

Economics