Current Affairs · Global Economic Reports
As per the IMF's Global Financial Stability Report (April 2025), which factor exerts upward pressure on sovereign debt markets, thereby increasing borrowing costs for governments in advanced economies?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Falling market prices of equity indices and cryptocurrencies
- 2Declining aggregate foreign direct investment inflows worldwide
- 3Rapidly rising domestic household consumption expenditure
- 4Excessive government bond issuance fueled by high fiscal deficits✓
Correct answer
Excessive government bond issuance fueled by high fiscal deficits
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