Which of the Following Is an Effect of Capital Flight

question 15

Multiple Choice

Which of the following is an effect of capital flight in a small economy such as Panama?

• A) a shift of the supply of loanable funds to the left
• B) a decrease of the Panamanian interest rate
• C) a shift of the net capital outflow to the right
• D) an appreciation of the Panamanian real exchange rate

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