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In a stylus maze study, some subjects are shocked for errors and others are not shocked. Also, some are told they'll earn $10 if they learn the maze in 5 trials and others are told they'll earn $100. The results are that whether or not shock was present had no effect on behavior, but those who could earn $100 learned faster than those earning just $10. This result is most clearly an example of
Capital Flight
The massive outflow of financial assets and capital from a country triggered by economic or political unrest.
Loanable Funds
The resources available for borrowing in the financial markets, influenced by savings, borrowing, and the government’s fiscal policies.
Demand For Loanable Funds
The desire to borrow money, driven by (among other factors) investments and the consumer desire for purchasing goods or services on credit.
Open-Economy Macroeconomic Model
A theoretical framework that analyzes the economy of a country in the context of its interactions with other countries, including trade, investment, and financial flows.
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