Devaluation Can Result from Government Action or an Economic Crisis

question 52

Multiple Choice

Devaluation can result from government action or an economic crisis.In August 1998, the Russian economy imploded.As a result all of the following listed events happened except:

• A)the ruble plunged in value.
• B)the government defaulted on on its foreign debt obligation.
• C)many Russians faced wage cuts and layoffs.
• D)Russia's economy did not recover from the impact.
• E)savings were wiped out as banks collapsed.

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Definitions:

National Security

The safeguarding of a nation's physical, economic, and digital security interests against threats.

Economic Growth

An increase in a country's production of goods and services over time, shown by a rise in its Gross Domestic Product (GDP).

Private Property Rights

The legal rights to possess, use, and dispose of land or belongings owned by an individual or entity.

Capitalism

An economic system characterized by private or corporate ownership of capital goods, investments determined by private decision, and prices, production, and the distribution of goods determined mainly by competition in a free market.