A capital ________ can promote financial instability in an emerging-market country because it can lead to a lending boom and excessive risk-taking on the part of banks, which helps trigger a ________

A) inflow; financial crisis
B) inflow; currency devaluation
C) outflow; financial crisis
D) outflow; currency devaluation

A

Economics

You might also like to view...

If the public decides to hold less currency and more deposits in banks, bank reserves

a. decrease and the money supply eventually decreases. b. decrease but the money supply does not change. c. increase and the money supply eventually increases. d. increase but the money supply does not change.

Economics

If the long-run average cost curve continuously slopes upward as output rises, minimum efficient scale would be

A) zero. B) at the midpoint of the long-run average cost curve. C) at the rate of output associated with the smallest sized plant the firm can build. D) nonexistent.

Economics