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What Credit-Market Policy Did the Korean Government Use to Promote

Question 13

Multiple Choice

What credit-market policy did the Korean government use to promote exports in its transition toward a rapidly industrializing nation?


A) The government liberalized financial markets and let market forces allocate credit.
B) The government set high interest rates on loans to exporters to screen out low-productivity investments.
C) The government cut off credit to exporters to make them compete for loans overseas.
D) The government used low-interest-rate loans as a form of indirect subsidy to exporters.

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