Capital Flight Occurs for Several Reasons, Most of Which Have

question 10

Multiple Choice

Capital flight occurs for several reasons, most of which have to do with

• A) government regulations on interest rates
• B) high taxes on domestic investments
• C) the threat of government seizure of domestic assets
• D) inappropriate economic policies

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Definitions:

Truck Differential

A mechanical device in a truck that allows the outer drive wheel to rotate faster than the inner drive wheel during a turn, improving traction and handling.

Tandem Drive Truck

A truck with two rear axles, both of which are drive axles, providing better traction and load distribution.

Spinout

Occurs when differential action allows one drive wheel on a slippery surface to spin while the other remains stationary and receives no driving torque. On tandem drive trucks, because of the additional differential action between the drive axles, it is possible to turn a spinning wheel at four times its normal speed. This can take out the interaxle differential or carrier differential. Spinout is a driver abuse failure of differential carriers.

Loss of Traction

A situation where the tires of a vehicle fail to grip the road surface, resulting in loss of control.