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Figure 32-3 -Refer to Figure 32-3. Which of the Following Is Consistent

Question 111

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Figure 32-3 Figure 32-3 -Refer to Figure 32-3. Which of the following is consistent with capital flight from Mexico? A) The real exchange rate of the peso appreciates from E<sub>0</sub> to E<sub>1</sub>. B) The real exchange rate of the peso depreciates from E<sub>0</sub> to E<sub>1</sub>. C) The real exchange rate of the peso appreciates from E<sub>1</sub> to E<sub>0</sub>. D) The real exchange rate of the peso depreciates from E<sub>1</sub> to E<sub>0</sub>.
-Refer to Figure 32-3. Which of the following is consistent with capital flight from Mexico?


A) The real exchange rate of the peso appreciates from E0 to E1.
B) The real exchange rate of the peso depreciates from E0 to E1.
C) The real exchange rate of the peso appreciates from E1 to E0.
D) The real exchange rate of the peso depreciates from E1 to E0.

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