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When Mexico Suffered from Capital Flight in 1994, What Happened

Question 54

Multiple Choice

When Mexico suffered from capital flight in 1994, what happened to Mexico's real interest rate and the peso?


A) The real interest rate fell and the peso appreciated.
B) The real interest rate fell and the peso depreciated.
C) The real interest rate rose and the peso appreciated.
D) The real interest rate rose and the peso depreciated.

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