A capital ________ can promote financial instability in an emerging-market country because it is what forces a country to ________ its currency

The trends displayed in the table can best be explained by

A) service industries have increased as a proportion of the economy and they tend to have higher nominal wage rates. B) the inflation rate has been rising over the time period. C) the real wage rate has increased at a rate about equal to the inflation rate. D) the nominal wage rate has increased at a rate about equal to the inflation rate. E) None of the above can explain the trends in the figure.

Under the Gold Standard,

A) exchange rates could float. B) real interest rates were fixed. C) real exchange rates were fixed. D) nominal interest rates were fixed. E) none of the above