Suppose Country X experienced a financial crisis. One contributing factor to the crisis was the sudden increase in the cost of fuel in the country. This is an example of an):

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The sudden increase in the cost of fuel is an example of an external shock, as it is an unexpected event that has a significant impact on the country's economy. This external shock can lead to a financial crisis, as in the case of Country X. Chronic current account deficits refer to a long-term imbalance in a country's trade balance, and overdependence on foreign capital refers to a situation where a country is relying too heavily on foreign investment to sustain its economy. A fixed exchange system refers to a monetary system where the value of a country's currency is fixed to another currency or a commodity, which is not applicable in this scenario.

Suppose Country X Experienced a Financial Crisis