Mexico suffered from capital flight in 1994. What happened to Mexico's net exports?
A) They decreased.
B) They did not change.
C) They increased.
D) They decreased until the peso appreciated; then they increased.

Question

Quizplus · Accepted Answer

Capital flight from Mexico in 1994 led to a depreciation of the peso, making Mexican goods cheaper for foreigners and thus increasing Mexico's net exports.

Mexico Suffered from Capital Flight in 1994