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Which of the Following Is NOT a True Statement About

Question 46

Multiple Choice

Which of the following is NOT a true statement about capital controls?


A) Countries are more able to prevent capital inflows than they were in the 1970s.
B) Capital controls may reduce world welfare by preventing capital from moving to its most valuable use.
C) It is unclear whether it is best to limit capital inflows, capital outflows, or both.
D) Restricting the movement of capital cannot stop a crisis once it has begun.

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