Compared with Earlier Decades, the Prevalence of Exchange Rate Crises

question 34

Multiple Choice

Compared with earlier decades, the prevalence of exchange rate crises during the turn of the century (1997-2002) was:

• A) much less severe than in the 1970s with its high inflation and high unemployment.
• B) much more severe in rapidly developing economies such as in South America and East Asia.
• C) very typical of modern economic history, indicating a need for international cooperation.
• D) much reduced as a result of the swift and effective response by the International Monetary Fund.

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