If There Is Capital Flight from Canada, How Does the Open-Economy

question 168

Multiple Choice

If there is capital flight from Canada, how does the open-economy macroeconomic model change?

• A) Both the supply of loanable funds and the supply of dollars for foreign exchange curves shift right.
• B) Both the supply of loanable funds and the supply of dollars for foreign exchange curves shift left.
• C) The supply of loanable funds shifts left, while the supply of dollars shifts right.
• D) The supply of loanable funds shifts right, while the supply of dollars shifts left.

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Definitions:

Across

From one side to the other, typically referring to movement or location spanning a space or distance.

Spider Bite

A puncture wound produced by a spider that can introduce venom, sometimes causing reactions ranging from mild irritation to severe symptoms.

Ice

Frozen water, a solid state of H2O, typically formed in cold temperatures.

Swelling

An abnormal enlargement of a body part or area due to fluid accumulation or inflammation.