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) None of the above is correct.
Correct Answer:
Verified
Correct Answer:
Verified
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