South Korea suffered a destabilizing speculation in the late 1990s. This had the effect of decreasing the ________ the won. The South Korean government tried to counteract this by ________ interest rates which should have increased the ________ the won.

Question

Quizplus · Accepted Answer

The speculation decreased the demand for the won. The government raised interest rates to make holding the won more attractive, thereby increasing its demand.

South Korea Suffered a Destabilizing Speculation in the Late 1990s