The accumulation of international debt increased the debt service requ

The accumulation of international debt increased the debt service requirements of the indebted countries. After the debt crisis began, this caused

A) the adoption of expansionary policies to return to growth.
B) large capital inflows to service the debt.
C) the adoption of strongly contractionary policies to reduce consumption and government deficits.
D) an intensification of industrial policies targeted on import substitutes.
E) a reduction in inequality.

ANSWER

C