What does it mean for a country to inflate away its debt? Why might this be...

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What does it mean for a country to "inflate away" its debt? Why might this be costly for investors even if the country does not default? What does it mean for a country to "inflate away" its debt? (Select all the choices that apply.) A. It means that the country may repay their debt by printing additional currency, which generally leads to a rise in inflation and a sharp devaluation. B. When "inflating away" the debt is infeasible or politically unattractive, countries may choose to default on their debt. C. Inflating away the debt always ends in the country filing for bankruptcy. D. Sovereign bond yields reflect investor expectations of inflation, currency, and default risk. Why might this be costly for investors even if the country does not default? (Select from the drop-down menus.) It might be costly because the country might its currency as a result of the policy. What does it mean for a country to "inflate away" its debt? Why might this be costly for investors even if the country does not default? What does it mean for a country to "inflate away" its debt? (Select all the choices that apply.) A. It means that the country may repay their debt by printing additional currency, which generally leads to a rise in inflation and a sharp devaluation. B. When "inflating away" the debt is infeasible or politically unattractive, countries may choose to default on their debt. C. Inflating away the debt always ends in the country filing for bankruptcy. D. Sovereign bond yields reflect investor expectations of inflation, currency, and default risk. Why might this be costly for investors even if the country does not default? (Select from the drop-down menus.) It might be costly because the country might its currency as a result of the policy.

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