Question 9 In 1981-1983, the world economy suffered a steep recession. Naturally, the fall in industrial countries' aggregate demand had a direct Not yet answered negative impact on the developing countries. What other mechanism was an even more important contributor to this event? Marked out of 1.00 Flag question Select one: O a. the collapse in primary commodity prices and the immediate, large rise in the interest burden that debtors had to pay O b. the immediate steep inflation and high commodity prices that followed the recession O c. the collapse of mortgage backed securities and the dollar's sharp depreciation in the foreign exchange market O d. the increase in primary commodity prices, increasing terms of trade in many poor countries Question 10 Not yet Which of the following is a reason that developing countries are running large surpluses? answered Marked out of 1.00 Select one: P Flag O a. They don't know how to manage their surpluses, they should hire economists. question O b. They have pegged exchange rates and thus the growth of exports must drive surplus up. O c. They are required to do so by IMF because they had defaulted on international loans in the past. O d. They have a strong desire to accumulate international reserves to protect against a sudden stop of capital inflows. T