What do you think about international "Chapter 11"?
What will be an ideal response?
A formal procedure whereby a country can seek international legal authorization to temporarily stop paying its debt and then negotiate a settlement that gives it more time to repay, or in extreme cases, actually writes off part of its obligations. The answer is that such an idea is probably a good idea, but again more moral hazard.
You might also like to view...
All the following would be a possible loan that the International Monetary Fund might make EXCEPT
A) long-term loans to a nation's government which support growth promoting projects. B) short-term loans to a nation's government. C) long-term loans to countries which are having problems in repaying existing debts. D) a loan to a private firm.
Explain how it is possible for a recently retired postal worker to be more wealthy than a rookie professional football player even though it is widely recognized that football players earn more than postal workers
What will be an ideal response?
How is asymmetric information related to asset-price bubbles?
What will be an ideal response?
The official poverty line is defined as:
a. one-half the average family income. b. one-third the average family income. c. three times the cost of a minimal food requirement. d. two times the cost of a minimal food requirement.