If there is capital flight from the United States,then the demand for loanable funds
A)and the supply of dollars in the foreign-exchange market shift right.
B)and the supply of dollars in the foreign-exchange market shift left.
C)shifts left while the supply of dollars in the foreign-exchange market shifts right.
D)shifts right while the supply of dollars in the foreign-exchange market shifts left.

Question

Quizplus · Accepted Answer

Capital flight leads to an increase in the demand for loanable funds as investors seek to move their capital abroad, and it increases the supply of dollars in the foreign-exchange market as more dollars are exchanged for foreign currencies.

If There Is Capital Flight from the United States,then the Demand