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South Korea Recovered from the Exchange Rate Crisis Much More

Question 88

Multiple Choice

South Korea recovered from the exchange rate crisis much more quickly than Thailand and Indonesia.Which of the following is not a reason why South Korea recovered quickly?


A) The Korean banking system recovered quickly and was able to loan money for investment.
B) South Korea was able to borrow billions from the IMF and this stabilized the won.
C) South Korean firms were able to obtain funds for investment by issuing stocks and bonds.
D) South Korean wages fell, offsetting large corporate losses.

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