When a Country Suffers from Capital Flight, Which Statement Best

question 184

Multiple Choice

When a country suffers from capital flight, which statement best explains the effects?

• A) The supply for loanable funds shifts right, and the interest rate increases.
• B) The supply for loanable funds shifts right, and the interest rate decreases.
• C) The supply for loanable funds shifts left, and the interest rate increases.
• D) The supply for loanable funds shifts left, and the interest rate decreases.

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