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.
Correct Answer:
Verified
Correct Answer:
Verified
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