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Which of the following best describes the influence of the threat of disinvestment on government behavior concerning capital accounts? Governments feel compelled to liberalize their
Which of the following best describes the influence of the threat of disinvestment on government behavior concerning capital accounts? Governments feel compelled to liberalize their capital accounts. Exit threats primarily encourage governments to tighten control over their capital accounts. Governments resist liberalizing their capital accounts when facing exit threats. The threat of exit typically does not impact government decisions regarding capital account liberalization
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