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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Definitions:

Producer Trophic Level

The first level in a food web, comprised of organisms that produce organic materials (usually through photosynthesis) from inorganic substances.

Base

A substance that can accept hydrogen ions (protons) or more generally, donate a pair of valence electrons; in nucleic acids, a nitrogen-containing molecule that forms part of the genetic code.

Denitrifying Bacteria

Bacteria involved in the nitrogen cycle, converting nitrates in soil into nitrogen gas, thereby reducing nitrogen availability to plants.

Nitrate

A polyatomic ion with the chemical formula NO3− or a compound containing this ion; important in the nitrogen cycle and used in fertilizers.