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.
Correct Answer:
Verified
Q178: A country with an undervalued currency
A)will have
Q179: The appropriate "medicine" for correcting payments imbalances
Q180: Figure 19-2 Q181: International trade under a floating exchange rate Q182: The principal result of the rising value Q184: The decline in the value of the Q185: After being introduced in 1999, the euro Q186: Because central banks intervene in currency markets, Q187: The main component of the monetary union Q188: Which of the following had prompted the
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A)increased
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