Question: which one is correct answer why Consider the model of sovereign debt and default as discussed in lectures (slides 36 - 43). According to the

which one is correct answer why

Consider the model of sovereign debt and default as discussed in lectures (slides 36 - 43). According to the model, a decrease in the debt burden leads to Select one: a. a decrease in the repayment probability b. an increase in the repayment probability c. outward shift of the consumption after repayment line (Y - (1+rL)L). d. inward rotation of the consumption after default line (Y - cY)

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