Multiple Choice
When a country experiences capital flight, which of the following best explains the effects?
A) The interest rate falls because the demand for loanable funds shifts left.
B) The interest rate falls because the supply for loanable funds shifts right.
C) The interest rate rises because the demand for loanable funds shifts right.
D) The interest rate rises because the supply for loanable funds shifts left.
Correct Answer:
Verified
Correct Answer:
Verified
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