Principles of Economics, 7th Edition (MindTap Course List)
Principles of Economics, 7th Edition (MindTap Course List)
7th Edition
ISBN: 9781285165875
Author: N. Gregory Mankiw
Publisher: Cengage Learning
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Chapter 32, Problem 4QR
To determine

The capital flight and its impact on the interest rate and exchange rate.

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What is capital flight? When a country experiences capital flight, what is the effect on its interest rate and exchange rate?
If a country has a floating exchange rate, then will a rise in the exchange rate be bad or good for importers?
How do changes in exchange rates affect international trade?
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