Emerging Markets Frequently Get Hit by the Following Two Effects

question 73

Multiple Choice

Emerging markets frequently get hit by the following two effects when they have a financial crisis:

• A)a decrease in the real interest rate and in the real exchange rate.
• B)capital flight and a falling real interest rate.
• C)an increase in the real interest rate and a depreciation of the real exchange rate.
• D)a surge in net capital inflows and rising inflation.

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Definitions:

Quantity

The measurement or amount of something, numerically represented, indicating how much or how many are present or required.

Specification

A detailed description of the requirements, dimensions, materials, or standards used to describe a product, material, or system.

Master Schedule

A detailed plan that outlines the anticipated production activities of a company, indicating what is to be produced, in what quantity, and when.

Not to Be Rescheduled

An event or activity that has been decided upon not to change its planned time or date.