The effect of an exchange crisis on large nations compared with small ones:
A) is less severe, with a better recovery in a shorter period.
B) is more severe, with a worse chance of full recovery in a shorter period.
C) is about the same in terms of recovery but not in terms of unemployment.
D) is more severe because the crisis affects interaction between a number of trading partners.

Question

Quizplus · Accepted Answer

Large nations often have more diversified economies and greater resources to manage and recover from an exchange crisis, leading to less severe impacts and a better chance of recovery in a shorter period compared to small nations.

The Effect of an Exchange Crisis on Large Nations Compared