Advocates of Capital Account Liberalization Emphasize Each of the Following

question 17

Multiple Choice

Advocates of capital account liberalization emphasize each of the following except the idea that capital flows

• A) enable poor countries to borrow for investment
• B) smooth consumption in the face of idiosyncratic risk
• C) impose discipline on policy makers
• D) increase the depth and sophistication of financial markets
• E) lead to factor price equalization across countries

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