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Why Did the East Asian Crisis of 1997 Occur

Question 56

Multiple Choice

Why did the East Asian Crisis of 1997 occur?


A) East Asian countries were unwilling to borrow enough international money to build sufficient infrastructure.
B) As inflation rose in East Asian countries,investors anticipated devaluations and began to sell off East Asian currencies.
C) Investors were surprised by an abrupt devaluation of its currency by the Thai government and responded by selling the Thai currency.
D) The Suharto dictatorship in Indonesia collapsed,sparking instability in the region.
E) China threatened to take over Taiwan,prompting investors to remove their money from the region.

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