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Question
A possible reason for the high systematic risk of the debt service ratio (DSR) in LDCs and EMs is
A. the tendency of world commodity prices to reflect non-similar economic conditions.
B. the sensitivity of this ratio to rising nominal and real interest rates in the developed, or lending, countries.
C. the tendency of prices and world demands for commodities to reflect simultaneously economic conditions.
D. the discretionary nature of money supply growth for LDC governments.
E. different demands for imports, and wide differences in the scale of vital imports across LDCs.
Answer
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