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    Principles of Economics Study Set 8
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    Exam 32: A Macroeconomic Theory of the Open Economy
  5. Question
    Capital Flight Increases a Country's Interest Rate
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Capital Flight Increases a Country's Interest Rate

Question 130

Question 130

True/False

Capital flight increases a country's interest rate. This increase in the interest rate makes net capital outflow lower than it would be had the interest rate stayed the same.

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