A case can be made for controls on capital inflows because capital inflows A. do more harm than good. B. are easier to control than capital outflows. C. can lead to a lending boom and encourage excessive risk taking. D. never go to financing productive investments. Which of the following is a disadvantage of controls on capital inflows: A. can discourage foreign direct investment B. limit lending booms and excessive risk taking C. promote financial stability D. may not actually be effective during a crisis due to efforts to evade the controls According to the Purchasing Power Parity, if one country's price level rises relative to another's by a certain percentage, then the other country's currency A. lose its value. B. depreciates by the same percentage. C. appreciates by the same percentage. D. maintains its value