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    International Economics Study Set 12
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    Exam 14: Exchange Rate Adjustments and the Balance of Payments
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    An Argument Can Be Made for Controls on the Inflow
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An Argument Can Be Made for Controls on the Inflow

Question 59

Question 59

True/False

An argument can be made for controls on the inflow of capital for developing countries because capital inflows can lead to a lending boom, speculation, and excessive risk taking.

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