Suppose that a recent wave of nationalizations in Argentina is jeopardizing investors' properties. Modify the diagrams to describe the effects of these events on the market for loanable funds and on the market of foreign-currency exchange. 10 Demand Supply Demand for pesós Supply of pesos 7. 9. 1 2 3 4 7 8 10 Quantity of loanable funds Quantity of Argentine pesos This model implies that the risk of capital flight the Argentine trade balance. Real interest rate 9,

ENGR.ECONOMIC ANALYSIS
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Suppose that a recent wave of nationalizations in Argentina is jeopardizing investors' properties. Modify the diagrams to describe
the effects of these events on the market for loanable funds and on the market of foreign-currency exchange.
10
Demand
Supply
Demand for pesós
Supply of pesos
7.
9.
1
2
3
4
7 8
10
Quantity of loanable funds
Quantity of Argentine pesos
This model implies that the risk of capital flight
the Argentine trade balance.
Real interest rate
9,
Transcribed Image Text:Suppose that a recent wave of nationalizations in Argentina is jeopardizing investors' properties. Modify the diagrams to describe the effects of these events on the market for loanable funds and on the market of foreign-currency exchange. 10 Demand Supply Demand for pesós Supply of pesos 7. 9. 1 2 3 4 7 8 10 Quantity of loanable funds Quantity of Argentine pesos This model implies that the risk of capital flight the Argentine trade balance. Real interest rate 9,
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