Which of the following was a contributing factor to Black Monday of October 1987? a. An abrupt

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Which of the following was a contributing factor to Black Monday of October 1987?

a. An abrupt loss of faith in the ability of the central banks of rich economies to manage the exchange rate of the US dollar.

b. The stubbornness of the US current account response to a lower US dollar.

c. A trading strategy known as “portfolio insurance”.

d. All of the above.

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