Country X has a significant amount of external debt. Which of the following is the most likely cause?

Country X has a significant amount of external debt. Which of the following is the most likely cause? 


A) The government of Country X borrowed money from local banks.
B) The government of Country X borrowed money from other governments.
C) The government of Country X spent more than it collected in revenues.
D) The government of Country X received short-term credits from selling bonds.





Answer: B


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