If Foreign Investors in Thailand Begin to Realize That Thailand

question 12

Multiple Choice

If foreign investors in Thailand begin to realize that Thailand could not maintain its peg to the U.S.dollar indefinitely, they will began to ________ in Thailand and exchange ________.This change in investment by foreigners is termed capital flight.

• A)purchase more investments; U.S.dollars for baht to purchase these investments
• B)sell off their investments; the baht they received for U.S.dollars
• C)sell off their investments; the U.S.dollars they received for baht
• D)purchase more investments; baht for U.S.dollars to purchase these investments
• E)hold their investment for longer; U.S.dollars for baht

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Definitions:

Total Profit

The sum of net gains, representing the total revenue from transactions minus the total costs associated with those transactions.

Enlarge

To make something larger or expand in size, scale, or scope.

Government Failure

A situation where government intervention in the economy causes more harm than good, leading to inefficient outcomes.

Inefficient Use

The situation where resources are not being used in the best possible manner, where potential output is not maximized.