Multiple Choice
When a country suffers from capital flight, which of the following best explains the effects?
A) The supply for loanable funds shifts right, and the interest rate increases.
B) The supply for loanable funds shifts right, and the interest rate decreases.
C) The supply for loanable funds shifts left, and the interest rate increases.
D) The supply for loanable funds shifts left, and the interest rate decreases.
Correct Answer:
Verified
Correct Answer:
Verified
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