If China experienced capital flight,the supply of Chinese yuan in the market for foreign-currency exchange would shift
A)left,which would make the real exchange rate of the Chinese yuan appreciate.
B)left,which would make the real exchange rate of the Chinese yuan depreciate.
C)right,which would make the real exchange rate of the Chinese yuan appreciate.
D)right,which would make the real exchange rate of the Chinese yuan depreciate.

Question

Quizplus · Accepted Answer

Capital flight from China would increase the supply of Chinese yuan in the foreign exchange market as investors convert yuan to foreign currencies, causing the yuan to depreciate.

If China Experienced Capital Flight,the Supply of Chinese Yuan in the Market