A country experiencing an international financial crisis will likely

Question

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A country experiencing an international financial crisis will likely encounter difficulty in sustaining its economic growth rate. This is because there will be a decrease in foreign investment, decrease in demand for exports, increase in borrowing costs, and decrease in domestic investment. All these factors will lead to a decline in economic growth. Option A and B are not likely because in a financial crisis situation, investors tend to pull out their investments instead of increasing them. Option D is also not likely as the export sector will suffer due to decreased demand and increased borrowing costs.

A Country Experiencing an International Financial Crisis Will Likely