A general rule is that, as international capital mobility for a country increases, the Country's BP curve __________.

Question

Quizplus · Accepted Answer

As international capital mobility for a country increases, the country's BP (balance of payments) curve becomes flatter (more elastic) because it is easier for capital to flow in and out of the country, making it more responsive to changes in interest rates relative to foreign interest rates.

A General Rule Is That, as International Capital Mobility for a Country