During a Financial Crisis in the Early 2000s,the Government of Argentina

question 66

Multiple Choice

During a financial crisis in the early 2000s,the government of Argentina partially froze bank accounts for a year.Given the supply of saving and the demand to borrow functions,we would expect this action to cause the interest rate to:

• A) increase and borrowing to increase.
• B) increase and borrowing to decrease.
• C) decrease and borrowing to decrease.
• D) decrease and borrowing to increase.

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