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The following table describes economic conditions in two countries, Lavia and Lovenia. Complete the table by indicating for each country whether the risk of a
The following table describes economic conditions in two countries, Lavia and Lovenia. Complete the table by indicating for each country whether the risk of a currency crisis is high or low. Country Condition 1 Condition 2 Risk Lavia The public expects that the central bank will increase the money The unemployment rate rises. supply. Lovenia The central bank coordinates the interest rate with the prevailing The government finances its budget deficits through interest rates in major international currencies. taxes and borrowing
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