The contagion that spread to South Korea, Indonesia, and other countries during the Asian financial crisis was:
A. competitive devaluation that led to plummeting exchange rates for all.
B. speculative attacks forcing them to abandon their fixed exchange rates.
C. competitive revaluation that led to severe overvaluation and collapse for all but South Korea.
D. a result of employing a fixed exchange rate by China.
Answer: B
You might also like to view...
Tracy and Amy are playing a game in which Tracy has the first move at X in the decision tree shown below. Once Tracy has chosen either the top or bottom branch at X, Amy, who can see what Tracy has chosen, must choose the top or bottom branch at Y or Z. Both players know the payoffs at the end of each branch. 
In the equilibrium of this game:
A. Tracy gets 25 and Amy gets 225. B. Tracy gets 300 and Amy gets 200. C. Tracy gets 75 and Amy gets 150. D. Tracy and Amy both get 125.
Income redistribution:
a. reduces the reward for production behavior b. encourages socially wasteful rent seeking c. leads to higher tax rated d. all of the above
The Katrina disaster in New Orleans decreased the ability of oil companies to purify crude oil into gasoline. This caused the:
A. supply curve for gasoline to shift inward. B. supply curve for gasoline to shift outward. C. quantity of gasoline supplied to move in along the supply curve. D. quantity of gasoline demanded to move out along the demand curve.
Refer to the figure below.________ inflation will eventually move the economy pictured in the diagram from short-run equilibrium at point ________ to long-run equilibrium at point ________, 
A. Rising; B; C B. Falling; A; C C. Falling; A; B D. Rising; A; C