Capital Flight Increases a Country's Interest Rate

question 130

True/False

Capital flight increases a country's interest rate. This increase in the interest rate makes net capital outflow lower than it would be had the interest rate stayed the same.

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Definitions:

Organic Solidarity

A term referring to social cohesion based upon the dependence individuals have on each other in more advanced societies.

Repressive Law

A concept in sociology referring to laws and legal mechanisms that maintain social order and control through the suppression of undesirable behaviors.

Profane

Something that is not sacred or biblical; relating to the secular, mundane aspects of life as opposed to the spiritual or religious.

Ideals and Morals

Principles or standards of behavior considered desirable or ethically good by a society or individual.