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For Developing Countries, One of the Dangers Inherent in the Inflows

Question 183

Multiple Choice

For developing countries, one of the dangers inherent in the inflows of capital that finance investment is


A) increasing unemployment that accompanies foreign investment.
B) rapid outflows of funds that put pressure on exchange rates.
C) the deflation that accompanies inflows of foreign capital.
D) the inflation that accompanies outflows of foreign capital.

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