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During 1974, the two major problems that have faced the industrially developed



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During 1974, the two major problems that have faced the industrially developed 
countries were an unprecedented rise in prices and a serious deterioration in the 
external payments position, both legacies of the quadrupling of oil prices at the end 
of the previous year. Most governments, therefore, were forced to adopt monetary 
and fiscal policies aimed at curbing inflation, and by the early 1975, the external 


 
 
165 
payments position had improved somewhat in most Western industrialised countries. 
These anti-inflationary
policies, however, depressed the level of business activity.
196- The economic crisis of 1974 ............ .
A) had a serious and lasting impact on unemployment 
B) grew even more serious in 1975 in all the Western industrialised societies 
C) was a direct result of the sudden sharp increase in late 1973 of oil prices 
D) was confined to underdeveloped countries 
E) contributed to an increase in monetary transactions 
197- In most countries efforts made in 1974 to curb inflation ............... .
A) increased unemployment and caused political instability 
B) led to an improvement in the situation within a year 
C) caused an even greater deficit in external payments 
D) failed totally due to the ever increasing oil prices 
E) received the full support of industrialists 
198- The author argues that inflation in 1974 ............ .
A) was mishandled by a majority of governments 
B) also showed itself clearly in the growing deficit in the balance of payments 
C) hit developed countries more than underdevel-oped countries 
D) eventually brought about a business boom 
E) finally did bring down the price of oil 
Skin cancer is a condition about which people are becoming increasingly concerned. 

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