When a Country Experiences Capital Flight, Which Statement Best Explains

question 116

Multiple Choice

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

• A) The interest rate falls because the demand for loanable funds shifts left.
• B) The interest rate falls because the supply for loanable funds shifts right.
• C) The interest rate rises because the demand for loanable funds shifts right.
• D) The interest rate rises because the supply for loanable funds shifts left.

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Definitions:

Contracts

Legal agreements between two or more parties that are enforceable by law.

Criminal Law

The body of law that deals with crimes and the legal punishment of criminal offenses.

Arbitrator

The third party in the arbitration procedure whose job is to settle the dispute.

Demands

Requests or claims, typically forceful, for something considered due or legally owed.