In the market for foreign-currency exchange,capital flight shifts
A)the demand curve right.
B)the demand curve left.
C)the supply curve right.
D)the supply curve left.

Question

Quizplus · Accepted Answer

Capital flight increases the supply of the domestic currency in the foreign exchange market as investors sell off domestic assets and convert their holdings into foreign currency, shifting the supply curve to the right.

In the Market for Foreign-Currency Exchange,capital Flight Shifts