When a Country Suffers from Capital Flight,the Demand for Loanable

question 39

Multiple Choice

When a country suffers from capital flight,the demand for loanable funds in that country shifts

• A)right,which increases interest rates in that country.
• B)right,which decreases interest rates in that country.
• C)left,which increases interest rates in that country.
• D)left,which decreases interest rates in that country.

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Definitions:

Phobia

An anxiety disorder characterized by an intense and, at least on the surface, irrational fear.

Lithium Carbonate

A chemical compound used primarily in the treatment of bipolar disorder and mood instability by moderating the neurotransmitters in the brain.

Manic Episode

A period of abnormally elevated, expansive, or irritable mood and increased energy or activity lasting at least one week, characteristic of bipolar disorder.

MAOIs

Short for Monoamine Oxidase Inhibitors, a class of antidepressant drugs that work by inhibiting the activity of the monoamine oxidase enzyme, thus increasing levels of certain neurotransmitters in the brain.