Figure 32-2

-Refer to Figure 32-2.Which curve is determined by net capital outflow only?
A)the demand curve in panela
B)the demand curve in panelc
C)the supply curve in panel a.
D)the supply curve in panel c.

Question

Figure 32-2

-Refer to Figure 32-2.Which curve is determined by net capital outflow only?
A)the demand curve in panela 
B)the demand curve in panelc 
C)the supply curve in panel a. 
D)the supply curve in panel c.

Quizplus · Accepted Answer

The supply curve in panel c is determined by net capital outflow, as it represents the supply of currency in the foreign exchange market, which is influenced by the net capital outflow.

Figure 32-2 -Refer to Figure 32-2.Which Curve Is Determined by Net Capital