The 'destabilising speculation' that followed the Thai government's attempt to peg its currency to the United States (US)dollar resulted in Thailand abandoning its peg. The result was a(n):

Question

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The destabilizing speculation that followed the attempt to peg its currency to the US dollar led to the depreciation of the baht relative to the US dollar, resulting in higher interest costs on dollar-denominated loans. Option A and B are incorrect because they state that the baht appreciated, which is not the case. Option D is also incorrect because it suggests that the interest costs on dollar-denominated loans decreased, which is not the case.

The 'Destabilising Speculation' That Followed the Thai Government's Attempt to Peg