Which of the following is a common underlying macroeconomic cause of financial crises?
A)Low relative price inflation rates
B)Narrowing current account deficit
C)Increases in stock and property prices
D)Decline in domestic borrowing
E)Increases in the value of domestic currency

Question

Quizplus · Accepted Answer

Financial crises tend to have common underlying macroeconomic causes: high relative price inflation rates, a widening current account deficit, excessive expansion of domestic borrowing, high government deficits and asset price inflation (such as sharp increases in stock and property prices).

Which of the Following Is a Common Underlying Macroeconomic Cause