Sovereign Debt Crises

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What is a sovereign debt crisis?

  1. A situation where a country is unable to pay its debts to foreign creditors.
  2. A situation where a country is unable to pay its debts to domestic creditors.
  3. A situation where a country is unable to pay its debts to both foreign and domestic creditors.
  4. A situation where a country is unable to pay its debts to any creditors.
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