Which of the Following Is a Self-Correcting Tendency in the Market

Multiple Choice

Which of the following is a self-correcting tendency in the market when an economy is in the inflation-and-deficit zone?

A) The loss of foreign exchange reserves compels the government to impose price controls and trade controls.
B) The macroeconomic imbalances cause international lenders to increase the interest rate on the country's external debt.
C) Domestic inflation reduces the real exchange rate.
D) All of the above.