Finally, show the effect of the change in NCO on the market for foreign exchange by shifting either the supply curve, the demand curve, or both. REAL EXCHANGE RATE (Dollars per peso) The Market for Foreign-Currency Exchange Supply QUANTITY OF PESOS Effects of capital flight Demand Summarize the results of capital flight by completing the following table. Demand Supply Real Exchange Rate Net Capital Outflow (?)

Finally, show the effect of the change in NCO on the market for foreign exchange by shifting either the supply curve, the demand curve, or both. REAL EXCHANGE RATE (Dollars per peso) The Market for Foreign-Currency Exchange Supply QUANTITY OF PESOS Effects of capital flight Demand Summarize the results of capital flight by completing the following table. Demand Supply Real Exchange Rate Net Capital Outflow (?)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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