A Technique for Implementing Industrial Policies That Probably Worsened the Effects

question 25

Multiple Choice

A technique for implementing industrial policies that probably worsened the effects of the 1997 crisis was

• A)directed credit.
• B)protection from imports.
• C)export subsidies.
• D)research subsidies.

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Definitions:

Compounded Continuously

The process of calculating interest on an investment or loan where the interest is reinvested and earns additional interest constantly over time.

Interest Rate

The fee a lender imposes on a borrower for utilizing assets, represented as a proportion of the principal sum.

Present Value

Today's monetary equivalent of a future amount of money or cash flow sequences, using a specified rate of return.

Discount Rate

In the realm of discounted cash flow analysis, this interest rate is used to calculate the present value of expected future cash flows.