Which of the Following Was NOT a Cause or a Characteristic

question 58

Multiple Choice

Which of the following was NOT a cause or a characteristic of the 1994/95 Mexican peso crisis?

• A)An overvalued exchange rate
• B)An inflow of large foreign portfolio capital
• C)The inability of the IMF, the world bank, and the NAFTA member countries (i.e., the United States and Canada)to predict the looming financial crisis
• D)Shifts by the world capital markets toward more conservative and risk-averse investments because of interest and exchange rate movements around the world

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Definitions:

Marginal Resource Cost

The additional cost incurred by acquiring or using one more unit of a resource.

Total Resource Cost

The overall expenses incurred in the production of goods or services, including raw materials, labor, and overhead costs.

Real Wages

Wages that have been adjusted for inflation, reflecting the actual purchasing power of income earned by workers.

Industrially Advanced Nations

Countries with highly developed economies, significant industrial production, and advanced technological infrastructure.