If a developing country makes its currency fully convertible, it runs the risk of having too:
A)low levels of domestic saving and investment.
B)high levels of domestic saving and investment.
C)much domestic saving and not enough domestic investment.
D)little foreign investment.

Question

Quizplus · Accepted Answer

Making a currency fully convertible can lead to capital outflows, reducing the funds available for domestic saving and investment.

If a Developing Country Makes Its Currency Fully Convertible, It