When a Country Suffers from Capital Flight,the Exchange Rate

question 99

Multiple Choice

When a country suffers from capital flight,the exchange rate

• A)depreciates,because demand in the market for foreign-currency exchange shifts left.
• B)depreciates,because supply in the market for foreign-currency exchange shifts right.
• C)appreciates,because demand in the market for foreign-currency exchange shifts right.
• D)appreciates,because supply in the market for foreign-currency exchange shifts left.

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