An Autonomous Short Term Capital Inflow or Reduced Capital Outflow

question 27

Multiple Choice

An autonomous short term capital inflow or reduced capital outflow results in a

• A)rightward shift in aggregate demand under flexible exchange rates and a leftward shift under fixed exchange rates
• B)rightward shift in aggregate demand under flexible exchange rates and no shift under fixed exchange rates
• C)leftward shift in aggregate demand under flexible exchange rates and a rightward shift under fixed exchange rates
• D)leftward shift in aggregate demand under flexible exchange rates and a no shift under fixed exchange rates