Testing evidence from consumption volatility, researchers have found that until high levels of liberalization are reached:
A) financial globalization does not deliver any consumption smoothing benefits.
B) financial globalization delivers a large measure of consumption smoothing benefits.
C) financial globalization intensifies problems in nations with backward financial systems.
D) financial globalization results in less government debt and a higher standard of living.

Question

Quizplus · Accepted Answer

Researchers have found that until high levels of liberalization are reached, financial globalization does not deliver any consumption smoothing benefits. This implies that the benefits of financial globalization are only experienced once a high level of liberalization has been achieved.

Testing Evidence from Consumption Volatility, Researchers Have Found That Until