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
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