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For a Developing Country, a _____ Can Promote Economic Instability

Question 117

Multiple Choice

For a developing country, a _____ can promote economic instability because it forces the country to ______.


A) capital inflow, adopt a contractionary monetary policy
B) capital inflow, adopt an expansionary monetary policy
C) capital outflow, devalue its currency
D) capital outflow, revalue its currency

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