The policy that was used to control the economic recession in Malaysia in 1997 was D. Government took suggestion from IMF.

Here's a step-by-step explanation:

1. In 1997, Malaysia was hit by the Asian Financial Crisis. The crisis started in Thailand with the financial collapse of the Thai baht caused by the decision of the Thai government to float the baht, cutting its peg to the USD, after exhaustive efforts to support it in the face of a severe financial overextension that was in part real estate driven.

2. The crisis quickly spread to other Asian economies, including Malaysia. The Malaysian economy was heavily reliant on foreign investment and international trade, both of which were severely affected by the crisis.

3. In response to the crisis, the Malaysian government sought advice from the International Monetary Fund (IMF). The IMF suggested a series of economic reforms designed to stabilize the economy.

4. These reforms included tightening fiscal policy, raising interest rates, and allowing insolvent banks and financial institutions to fail. The government also implemented capital controls to prevent the outflow of money from the country.

5. The other options (A. BNM reduced the Overnight Policy Rate, B. Government increased tax, C. Government discouraged foreign workers) were not the primary measures taken by the Malaysian government in response to the 1997 economic recession.

6. Therefore, the correct answer is D. Government took suggestion from IMF.

Question

The policy that was used to control the economic recession in Malaysia in 1997 was D. Government took suggestion from IMF.

Here's a step-by-step explanation:

1. In 1997, Malaysia was hit by the Asian Financial Crisis. The crisis started in Thailand with the financial collapse of the Thai baht caused by the decision of the Thai government to float the baht, cutting its peg to the USD, after exhaustive efforts to support it in the face of a severe financial overextension that was in part real estate driven.

2. The crisis quickly spread to other Asian economies, including Malaysia. The Malaysian economy was heavily reliant on foreign investment and international trade, both of which were severely affected by the crisis.

3. In response to the crisis, the Malaysian government sought advice from the International Monetary Fund (IMF). The IMF suggested a series of economic reforms designed to stabilize the economy.

4. These reforms included tightening fiscal policy, raising interest rates, and allowing insolvent banks and financial institutions to fail. The government also implemented capital controls to prevent the outflow of money from the country.

5. The other options (A. BNM reduced the Overnight Policy Rate, B. Government increased tax, C. Government discouraged foreign workers) were not the primary measures taken by the Malaysian government in response to the 1997 economic recession.

6. Therefore, the correct answer is D. Government took suggestion from IMF.

Knowee AI · Accepted Answer

The policy that was used to control the economic recession in Malaysia in 1997 was D. Government took suggestion from IMF.

Here's a step-by-step explanation:

1. In 1997, Malaysia was hit by the Asian Financial Crisis. The crisis started in Thailand with the financial collapse of the Thai baht caused by the decision of the Thai government to float the baht, cutting its peg to the USD, after exhaustive efforts to support it in the face of a severe financial overextension that was in part real estate driven.

2. The crisis quickly spread to other Asian economies, including Malaysia. The Malaysian economy was heavily reliant on foreign investment and international trade, both of which were severely affected by the crisis.

3. In response to the crisis, the Malaysian government sought advice from the International Monetary Fund (IMF). The IMF suggested a series of economic reforms designed to stabilize the economy.

4. These reforms included tightening fiscal policy, raising interest rates, and allowing insolvent banks and financial institutions to fail. The government also implemented capital controls to prevent the outflow of money from the country.

5. The other options (A. BNM reduced the Overnight Policy Rate, B. Government increased tax, C. Government discouraged foreign workers) were not the primary measures taken by the Malaysian government in response to the 1997 economic recession.

6. Therefore, the correct answer is D. Government took suggestion from IMF.

Which is the policy should be used to control the economic recession in Malaysia in 1997? A. BNM reduced the Overnight Policy Rate B. Government increased tax C. Government discouraged foreign workers D. Government took suggestion from IMF

Question

Solution

Similar Questions

Upgrade your grade with Knowee