For the three years after a severe economic shock such as that caused by a hurricane, typically:

Question

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After a severe economic shock such as a hurricane, investment often rises as the affected areas require rebuilding efforts. However, saving tends to fall due to the increased consumption needed for reconstruction. This increase in consumption can lead to a rise in current account deficit, which is then financed by financial inflows. Creditors may become impatient for debtors to begin payback, but this is not a typical outcome for the three years following an economic shock. Additionally, it is not stated that domestic financial markets are able to handle the situation without a decrease in consumption.

For the Three Years After a Severe Economic Shock Such