If a Country Had Capital Flight, Then the Real Exchange

question 186

Multiple Choice

If a country had capital flight, then the real exchange rate would

• A)fall. To offset this fall the government could increase the budget deficit.
• B)fall. To offset this fall the government could decrease the budget deficit.
• C)rise. To offset this rise the government could increase the budget deficit.
• D)rise. To offset this rise the government could decrease the budget deficit.

---

Definitions:

Work Environment

The physical and psychological conditions under which employees work, including factors like safety, facilities, and interpersonal relationships.

Leisure

Time free from the demands of work or duty, where individuals can choose activities of personal interest and relaxation.

Physically Unable

The state of being unable to perform physical activities or tasks due to limitations or disabilities.

Colonial Rule

The control or governing influence of a nation over a dependent country, territory, or people.