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If There Is Capital Flight from Canada, How Does the Open-Economy

Question 168

Multiple Choice

If there is capital flight from Canada, how does the open-economy macroeconomic model change?


A) Both the supply of loanable funds and the supply of dollars for foreign exchange curves shift right.
B) Both the supply of loanable funds and the supply of dollars for foreign exchange curves shift left.
C) The supply of loanable funds shifts left, while the supply of dollars shifts right.
D) The supply of loanable funds shifts right, while the supply of dollars shifts left.

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