2020
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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$1 trillion
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$4 trillion
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$3 trillion
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$2 trillion
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Detailed explanation-1: -The COVID-19 pandemic can affect both imports and exports of goods. On the demand side, the stay-at-home order decreases shopping opportunities, thus decreasing demand. The decrease in sales due to workplace closures may have also reduced people’s earnings and incomes, further decreasing the aggregate demand.
Detailed explanation-2: -LDCs’ total external debt service reached $31 billion in 2020, but for 2021 and 2022, this is expected to increase to $50 billion and $43 billion respectively.
Detailed explanation-3: -In the event of a war, stagnant economic growth or civil unrest, the economy of a country is slow to pick its pace at the time. So in order to stimulate the economy and boost demade, governments increase borrowing which inadvertently gives rise to a high-debt ratio.
Detailed explanation-4: -Debt burden indicates an entity’s significant amount of debt and the cost of servicing it. Its increase indicates a concerning scenario and emphasizes the urgent need for responsible authorities to implement debt management policies and initiatives to alleviate the risky environment.