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    Exam 18: Fixed Exchange Rates and Foreign Exchange Intervention
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    Capital Flight
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Capital Flight

Question 30

Question 30

Multiple Choice

Capital flight


A) increases reserves.
B) is never associated with the expectation of devaluation.
C) may undo expected devaluation.
D) reduces losses during a devaluation scare.
E) decreases reserves and may induce devaluation.

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