Capital flight shifts the demand for loanable funds to the left.

Name: Capital flight shifts the demand for loanable funds to the left.
Brand: Quizplus
Rating: 4.9 (60 reviews)

Question

Quizplus · Accepted Answer

Capital flight typically increases the demand for loanable funds in the country experiencing the outflow, as investors sell domestic assets to buy foreign assets, leading to higher interest rates and increased demand for loans to compensate for the outflow of capital.

Capital Flight Shifts the Demand for Loanable Funds to the Left