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    Principles of Economics Study Set 2
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    Exam 32: A Macroeconomic Theory of the Open Economy
  5. Question
    NARRBEGIN 32-2 Graph 32-2
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NARRBEGIN 32-2 Graph 32-2

Question 32

Question 32

Multiple Choice

NARRBEGIN 32-2
Graph 32-2
NARRBEGIN 32-2 Graph 32-2    -In Graph 32-2, capital flight from Indonesia causes the demand for loanable funds in Indonesia to: A)  decrease from D<sub>0</sub> to D<sub>1</sub> B)  increase from D<sub>1</sub> to D<sub>0</sub> C)  be unaffected D)  it is impossible to tell what happens to net foreign investment
-In Graph 32-2, capital flight from Indonesia causes the demand for loanable funds in Indonesia to:


A) decrease from D0 to D1
B) increase from D1 to D0
C) be unaffected
D) it is impossible to tell what happens to net foreign investment

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