If a country had capital flight, then the real exchange rate would

a. fall. To offset this fall the government could increase the budget deficit.
b. fall. To offset this fall the government could decrease the budget deficit.
c. rise. To offset this rise the government could increase the budget deficit.
d. rise. To offset this rise the government could decrease the budget deficit.

a

Economics

You might also like to view...

Explain the process by which a private subsidy corrects an external benefit

What will be an ideal response?

Economics

A decrease in income will shift the demand curve for an inferior good to the right

a. True b. False Indicate whether the statement is true or false

Economics