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- What problems would arise if a developing country defaulted on its external debt? Who would be hurt? What policies would you recommend to ease external debt problems, and what would be the effects of these policies on borrowing countries?State and explain 4 limits to fiscal policy in a developing country economyWhat are some major issues that surrounds the issue of debt in developing countries
- Using a graphical analyses explore the consequences for a hypothetical developing economy, if the the rate of borrowing to fund a fiscal deficit is growing annually at a faster rate than GDP.Give a brief background about the issue of debt that are greatly impacting developing countries.Examine the consequences for a hypothetical developing economy if the rate of borrowing to fund a fiscal deficit is growing annually at a faster rate than the GDP. use hypothetical numbers and percentages.