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Data response (2)


Read the article $4.3 billion debt hurdle in face of 2011/12 budget and then answer the questions below.


Question 1

Distinguish between 'internal' and 'external' debt.

Question 2

Using examples from the article and from your own knowledge, examine the problems associated with a developing country having a significant amount of external debt.

Question 3

Explain how inflation affects the external debt of a country such as Uganda.

Question 4

Evaluate the policies that a developing country, such as Zambia, can use to counter the effects of inflation.