A firm produces manufacturing equipment, some of which it exports. Which of the following effects of capital flight in the country it produces in would likely reduce the quantity of equipment it sells?
A) both what happens to the interest rate and what happens to the exchange rate
B) what happens to the interest rate but not what happens to the exchange rate
C) what happens to the exchange rate but not what happens to the interest rate
D) neither what happens to the interest rate nor what happens to the interest rate.
Correct Answer:
Verified
Q114: If a country experiences capital flight,which of
Q121: If the risk of buying U.S.assets rises
Q123: When Mexico suffered from capital flight in
Q126: When a country experiences capital flight,which of
Q132: When Mexico suffered from capital flight in
Q136: In 2002 it looked like the Argentinean
Q138: In 1995 House Speaker Newt Gingrich threatened
Q271: If Kenya experienced capital flight, the supply
Q272: Recently Greece ran large deficits and people
Q274: Which of the following is most likely
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents