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How can the government prevent speculators from rushing into and out of the country's market and disrupting its economy? a. by using capital controls b. by freezing someone's assets c. by stopping money laundering d. by using a quota

User Yehia Awad
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The government can prevent speculators from disrupting the economy by using capital controls, quotas, and stopping money laundering.

One way the government can prevent speculators from rushing into and out of the country's market and disrupting its economy is by using capital controls. Capital controls are measures imposed by the government to regulate the flow of foreign capital in and out of the country. By implementing capital controls, the government can restrict short-term speculative capital flows and encourage long-term investment capital instead. This helps to stabilize the economy and make it less vulnerable to the sentiments of global investors.

Another option is to impose quotas on the inflow and outflow of foreign capital. This involves setting numerical limitations on the quantity of capital that can be invested or withdrawn from the country. Quotas can help to control the flow of capital and prevent excessive speculation that could disrupt the economy.

Additionally, the government can take steps to stop money laundering and enforce regulations to ensure transparency in financial transactions. This helps to prevent illicit flows of capital that can have a destabilizing effect on the economy.

User Jecabeda
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