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A Surge in International Bank Lending Could Be Potentially Economically

Question 15

Multiple Choice

A surge in international bank lending could be potentially economically destabilizing because


A) it creates the possibility of reduced control of a country's money supply.
B) it directly contributes to destabilizing real investment flows.
C) it results in too much control of world investment by a few large industrial countries.
D) it results in inefficient use of financial capital, and hence reduces world growth rates.

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