Which of the Following Is a Reason That Developing Countries

Which of the following is a reason that developing countries are running large surpluses?

A) They are required to do so by IMF.
B) They have defaulted on international loans.
C) They have pegged exchange rates and thus the growth of exports must drive surplus up.
D) They have a strong desire to accumulate international reserves to protect against a sudden stop of capital inflows.
E) They don't know how to manage their surpluses.

Correct Answer:

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