A technique for implementing industrial policies that probably worsened the effects of the 1997 crisis was
A)directed credit.
B)protection from imports.
C)export subsidies.
D)research subsidies.

Question

Quizplus · Accepted Answer

Directed credit refers to a policy where the government directs banks to lend to specific sectors or industries, typically those deemed strategic or important for economic development. In the case of the 1997 crisis, many of these loans went to industries with poor fundamentals or were used for speculative purposes. This led to a buildup of bad debt that eventually contributed to the crisis. Therefore, directed credit probably worsened the effects of the 1997 crisis. Options B, C, and D are not directly related to the effects of the 1997 crisis.

A Technique for Implementing Industrial Policies That Probably Worsened the Effects