The problem of moral hazard helps explain why the International Monetary Fund _______ the Asian countries during their 1997-1998 crisis and _______ Argentina during its 20011-2002 crisis.
A) helped;abandoned.
B) abandoned;helped.
C) helped;helped
D) abandoned;abandoned.
E) none of the above.

Question

Quizplus · Accepted Answer

The IMF helped Asian countries during their 1997-1998 crisis but abandoned Argentina during its 2001-2002 crisis due to concerns about moral hazard and the sustainability of Argentina's economic policies.

The Problem of Moral Hazard Helps Explain Why the International