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One Characteristic of a Financial Crisis Caused by Macroeconomic Imbalances

Question 34

Multiple Choice

One characteristic of a financial crisis caused by macroeconomic imbalances is that it


A) may or may not be predictable.
B) will occur eventually even though its timing is unpredictable.
C) may be caused by expansionary fiscal policies accompanied by high budget deficits.
D) may be caused by high deficits financed by increases in the money supply.
E) All of the above.

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