Question: A case can be made for controls on capital inflows because capital inflows A . never go to financing productive investments. B . are easier

A case can be made for controls on capital inflows because capital inflows
A. never go to financing productive investments.
B. are easier to control than capital outflows.
C. can lead to a lending boom and encourage excessive risk taking.
D. do more harm than good.
Which of the following is a disadvantage of controls on capital outflows:
A. promote financial stability
B. may not actually be effective during a crisis due to efforts to evade the controls
C. can discourage foreign direct investment
D. limit lending booms and excessive risk taking
A case can be made for controls on capital

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