Which of the following is an effect caused by capital flight?
A) It increases the need for domestic investment holdings.
B) It decreases the ability of the nation to service debt and pay for imports.
C) It reduces harmful currency restrictions.
D) It decreases the nation's supply of hard currencies.

Question

Quizplus · Accepted Answer

Capital flight decreases the ability of the nation to service debt and pay for imports because it reduces the nation's supply of hard currencies.

Which of the Following Is an Effect Caused by Capital