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Author Question: The best explanation for the late 1994/early 1995 collapse of the Mexican peso and stock market is ... (Read 29 times)

nenivikky

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on: Jun 30, 2018
The best explanation for the late 1994/early 1995 collapse of the Mexican peso and stock market is
 
  (a) free movement of capital internationally is destabilizing for a developing country.
  (b) portfolio investments were camouflaging overvalued exchange rates.
  (c) debt for equity swaps had created imbalances in the ownership structure of the economy.
  (d) the potential benefits of NAFTA had been oversold.

Question 2

What is the relationship between economic development and the political institutions of democracy?
 
  What will be an ideal response?


mrphibs

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Reply #1 on: Jun 30, 2018
Answer to Question 1

B

Answer to Question 2

This is not a settled question. Students can be expected to understand that the relationship is not simple or widely understood. But the question is ripe for student speculation.


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