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Severe Fiscal Imbalances Can Directly Trigger a Currency Crisis Since

Question 18

Multiple Choice

Severe fiscal imbalances can directly trigger a currency crisis since


A) investors fear that the government may not be able to pay back the debt and so begin to sell domestic currency.
B) the government may stop printing money.
C) the government may have to cut back on spending.
D) the currency must surely increase in value.

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