Choose the correct answer and give short explaination.

Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter28: Monetary Policy And Bank Regulation
Section: Chapter Questions
Problem 25RQ: Explain how to use quantitative easing to stimulate aggregate demand.
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Choose the correct answer and give short explaination.

5. Generally speaking, liberalization of financial markets when combined with a weak, underdeveloped domestic financial system tends to
A. Strengthen the domestic financial system in the short run
B. Create an environment susceptible to currency and financial crises
C. Raise interest rates and lead to domestic recession
D. None of the above 

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