Which is NOT a potential cost faced by nations that choose against repaying their debts?
A)A loss of future creditworthiness
B)A loss of foreign assets
C)Moral hazard
D)Domestic recession

Question

Quizplus · Accepted Answer

A loss of future creditworthiness, a loss of foreign assets, and domestic recession are all potential costs that nations face when they choose against repaying their debts. However, moral hazard is not a cost but rather a potential incentive for nations to default on their debts, as it is the expectation that they will not face consequences for doing so.

Which Is NOT a Potential Cost Faced by Nations That