If a country runs many consecutive budget deficits but the level of is high when compared to the level of , the risk of default and crisis is O Foreign Direct Investment, Portfolio Investment in government bonds, smaller. O Portfolio Investment in government bonds, Foreign Direct Investment, smaller. O Foreign Direct Investment, Portfolio Investment in government bonds, higher. O Portfolio Investment in government bonds, Foreign Direct Investment, inexistent.

Brief Principles of Macroeconomics (MindTap Course List)
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ISBN:9781337091985
Author:N. Gregory Mankiw
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Chapter18: Six Debates Over Macroeconomic Policy
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If a country runs many consecutive budget deficits but the level of
is high when compared to the level of
the risk of default and crisis
is
O Foreign Direct Investment, Portfolio Investment in government bonds, smaller.
O Portfolio Investment in government bonds, Foreign Direct Investment, smaller.
O Foreign Direct Investment, Portfolio Investment in government bonds, higher.
O Portfolio Investment in government bonds, Foreign Direct Investment, inexistent.
Transcribed Image Text:If a country runs many consecutive budget deficits but the level of is high when compared to the level of the risk of default and crisis is O Foreign Direct Investment, Portfolio Investment in government bonds, smaller. O Portfolio Investment in government bonds, Foreign Direct Investment, smaller. O Foreign Direct Investment, Portfolio Investment in government bonds, higher. O Portfolio Investment in government bonds, Foreign Direct Investment, inexistent.
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