The Argentinian crisis of 2001 was characterized by:
A) international investors losing confidence and shifting the demand for loanable funds to the right.
B) government debt becoming more expensive, shifting savings to the left.
C) increasing interest rates.
D) All of these statements are true.

Question

Quizplus · Accepted Answer

All of these statements are true. The Argentinian crisis of 2001 saw international investors losing confidence and shifting demand for loanable funds to the right due to the government defaulting on its debt. This resulted in government debt becoming more expensive and shifting savings to the left. Interest rates also increased as a result of the crisis.

The Argentinian Crisis of 2001 Was Characterized By