If Kenya Experienced Capital Flight, the Supply of Kenyan Schillings

question 42

Multiple Choice

If Kenya experienced capital flight, the supply of Kenyan schillings in the market for foreign-currency exchange would shift

• A)left, which would make the real exchange rate of the Kenyan schilling appreciate.
• B)left, which would make the real exchange rate of the Kenyan schilling depreciate.
• C)right, which would make the real exchange rate of the Kenyan schilling appreciate.
• D)right, which would make the real exchange rate of the Kenyan schilling depreciate.

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Definitions:

Factor Analysis

A statistical method used to describe variability among observed, correlated variables in terms of potentially lower number of unobserved variables, called factors.

Logical-mathematical

Relating to logical thinking and an understanding of mathematical concepts and relationships.

Linguistic

Pertaining to language, including its structure, use, and the study of its properties and function.

Spatial

Relating to, occupying, or having the character of space, often used in context with one's ability to judge size, distance, or the relationship between objects in space.