When a country suffers from capital flight, the exchange rate
a. depreciates, because demand in the market for foreign-currency exchange shifts left.
b. depreciates, because supply in the market for foreign-currency exchange shifts right.
c. appreciates, because demand in the market for foreign-currency exchange shifts right.
d. appreciates, because supply in the market for foreign-currency exchange shifts left.
b
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Assume Joe invests a total of $10,000 in a company - $5,000 of which is his own money and $5,000 which he borrowed at a 10% interest rate. If the company's stock value decreases by 5% in one year at which time Joe sells his shares of the stock, what is Joe's rate of return on his investment?
a. ?5% b. ?10% c. ?20% d. ?30%
Which one of the following would supply dollars to the foreign exchange market?
a. the sale of U.S. automobiles to a Mexican consumer b. the spending of British tourists in the United States c. the purchase of Canadian oil by a U.S. consumer d. the sale of a U.S. corporation to a Saudi Arabian investor