When a Country Experiences Capital Flight Its Currency

question 25

Multiple Choice

When a country experiences capital flight its currency

• A)appreciates and net exports rise.
• B)appreciates and net exports fall.
• C)depreciates and net exports rise.
• D)depreciates and net exports fall.

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Definitions:

Economic Profit

The difference between total revenue and total costs, including both explicit and implicit costs, often indicating the degree of profitability.

Marginal Decision Rule

A principle stating that an action should be taken if and only if the marginal benefits exceed the marginal costs.

ATC

Average Total Cost, which represents the total cost per unit of output, calculated by dividing the total cost by the quantity of output produced.

MR

Stands for Marginal Revenue, which is the additional income earned from selling one more unit of a good or service.