Which of the following is a common underlying macroeconomic cause behind financial crises?
A)Low relative price inflation rates
B)A narrowing current account deficit
C)Asset price inflation
D)Depressed domestic borrowing situation

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,and asset price inflation (such as sharp increases in stock and property prices).

Which of the Following Is a Common Underlying Macroeconomic Cause