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    Exam 13: A Macroeconomic Theory of the Open Economy
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    Figure 32-3 -Refer to Figure 32-3. Suppose the Mexican Economy Starts at Economy
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Figure 32-3 -Refer to Figure 32-3. Suppose the Mexican Economy Starts at Economy

Question 132

Question 132

Multiple Choice

Figure 32-3 Figure 32-3   -Refer to Figure 32-3. Suppose the Mexican economy starts at r<sub>0</sub> and E<sub>0</sub>. Which of the following new equilibriums is consistent with capital flight? A) r<sub>0</sub> and E<sub>0</sub> B) r<sub>1</sub> and E<sub>0</sub> C) r<sub>1</sub> and E<sub>1</sub> D) r<sub>0</sub> and E<sub>1</sub>
-Refer to Figure 32-3. Suppose the Mexican economy starts at r0 and E0. Which of the following new equilibriums is consistent with capital flight?


A) r0 and E0
B) r1 and E0
C) r1 and E1
D) r0 and E1

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