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:

Movement Along

Refers to a change in the quantity demanded or supplied of a good, due to a change in its price, represented graphically as a movement along a demand or supply curve.

Demand Curve

A graphical representation showing the relationship between the price of a good or service and the quantity demanded by consumers at those prices.

Supply of Eggs

The total quantity of eggs that producers are willing and able to sell at a given price level.

Substitutes

Goods or services that can be used in place of each other, satisfying the same needs or desires, and thus competing in the same market.