Figure 32-7 Refer to This Diagram of the Open-Economy Macroeconomic Model of Model

Multiple Choice

Figure 32-7
Refer to this diagram of the open-economy macroeconomic model of the Mexican economy to answer the questions below.
-Refer to Figure 32-7.Suppose that the Mexican economy starts at r2 and e3.Which of the following is consistent with the effects of capital flight?

A) a shift from D2 to D1 in Panel A
B) a shift from NCO1 to NCO2 in Panel B
C) a shift from D2 to D1 in Panel C
D) All of the above shifts are consistent with the effects of capital flight.