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    Principles of Economics Study Set 3
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    Exam 32: A Macroeconomic Theory of the Open Economy
  5. Question
    Figure 32-7 -Refer to Figure 32-7.Suppose the Mexican Economy Starts at R<sub>0</sub>
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Figure 32-7 -Refer to Figure 32-7.Suppose the Mexican Economy Starts at R0

Question 284

Question 284

Multiple Choice

Figure 32-7 Figure 32-7   -Refer to Figure 32-7.Suppose the Mexican economy starts at r<sub>0</sub> and E<sub>1</sub>.Which of the following new equilibrium is consistent with capital flight? A)  r<sub>o</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)  None of the above is correct.
-Refer to Figure 32-7.Suppose the Mexican economy starts at r0 and E1.Which of the following new equilibrium is consistent with capital flight?


A) ro and E0
B) r1 and E0
C) r1 and E1
D) None of the above is correct.

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