In emerging markets, the reductions in growth of GDP as a result of exchange rate crises:
A) is never very much.
B) is not a problem because the IMF and World Bank make up the difference.
C) is more than 50% per year.
D) is about 10% of total GDP.

Question

Quizplus · Accepted Answer

Exchange rate crises in emerging markets can significantly impact GDP growth, often resulting in a reduction of about 10% of total GDP. This reflects the substantial but not catastrophic impact such crises can have on an economy, affecting investment, consumption, and overall economic confidence.

In Emerging Markets, the Reductions in Growth of GDP as a Result