Indicate whether the statement is true or false.
When a country experiences capital flight, which of the following rise?
a. its real interest rate and its real exchange rate
b. its real interest rate but not its real exchange rate
c. its real exchange rate but not its real interest rate
d. neither its real interest rate nor its foreign exchange rate
b
Economics
You might also like to view...
Rent controls generally provide the tenants the most efficient housing choice in the long run and maximize economic welfare.?
Economics
Social Security is described as a
a. voluntary system because people freely voted for it b. age-based premium system c. employer-based premium system d. pay-as-you-go system e. system whose revenues are generated from sales tax
Economics
During the financial crisis of 2007–2009, the interest rate spread on mortgage-backed securities over Treasury bills
A. increased tremendously. B. increased moderately. C. decreased moderately. D. decreased tremendously.
Economics
In making international comparisons of living standards using GDP, which of the following is not adjusted for in the calculation?
A. Purchasing power parity. B. The quantity of resources available to the economy. C. Population size. D. Different currency values.
Economics