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The Bursting of the Asset-Price "Bubble" in Countries with Fixed

Question 112

Multiple Choice

The bursting of the asset-price "bubble" in countries with fixed exchange rates and unrestricted capital flows caused


A) large capital outflows and a falling exchange rate.
B) large capital outflows and a rising exchange rate.
C) large capital inflows and a falling exchange rate.
D) large capital inflows and a rising exchange rate.

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