Capital flight
A)decreases a country's net exports and increases its long run growth path.
B)increases a country's net exports and increases its long run growth path.
C)increases a country's net exports and decreases its long run growth path.
D)decreases a country's net exports and decreases its long run growth path.

Question

Quizplus · Accepted Answer

Capital flight increases net exports as domestic currency depreciates, making exports cheaper. However, it decreases the long run growth path due to reduced investment and economic instability.

Capital Flight