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Question: Regarding the Asian currency crisis, answer the given questions:[A] Explain the normal reasons why a currency undergoes a significant depreciation and what were important characteristics of Asian countries involved in the crisis?
[B] What are some expected domestic economic consequences of the currency crisis for the countries involved? Focus on:o import prices of goods and services into the Asian country.o export prices of goods and services from the Asian country.o Domestic inflation rates.
[C] Suppose that the countries involved undertake a tight monetary policy and raise interest rates in response to the crisis. What are the two primary reasons for raising interest rates in their case?
[D] Given high domestic interest rates, what is the economic outlook for these Asian countries in the next few years?
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