If a Country Experiences Capital Flight,which of the Following Curves

question 134

Multiple Choice

If a country experiences capital flight,which of the following curves shift right?

• A)only the demand for loanable funds.
• B)only the supply of dollars in the market for foreign-currency exchange.
• C)only the net capital outflow curve and the supply of dollars in the market for foreign currency exchange.
• D)the demand for loanable funds,the net capital outflow curve,and the supply of dollars in the market for foreign currency exchange.

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Definitions:

Depreciation

The accounting method of allocating the cost of a tangible or physical asset over its useful life.

Residual Value

The projected worth of an asset upon the completion of its lifespan.

Composite Depreciation

A method of depreciation where a single depreciation rate is applied to the aggregate cost of multiple assets with similar characteristics and useful lives.

Heterogeneous Assets

Assets that are dissimilar in nature and cannot be easily substituted by or compared with each other within a market or industry.