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Why Did the East Asian Currency Crisis of 1997 Occur

Question 55

Multiple Choice

Why did the East Asian currency crisis of 1997 occur?


A) East Asian countries were unwilling to borrow enough international money to build sufficient infrastructure.
B) As inflation rose in East Asian countries,investors anticipated devaluations and began to sell off East Asian currencies.
C) Investors were surprised by an abrupt devaluation by the Thai government of its currency and responded by selling their Thai currency.
D) The Suharto dictatorship in Indonesia collapsed,sparking instability in the region.

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