An autonomous short term capital inflow or reduced capital outflow results in a a rightward shift in aggregate demand under flexible exchange rates and
A) leftward shift under fixed exchange rates
B) rightward shift in aggregate demand under flexible exchange rates and no shift under fixed exchange rates
C) leftward shift in aggregate demand under flexible exchange rates and a rightward shift under fixed exchange rates
D) leftward shift in aggregate demand under flexible exchange rates and a no shift under fixed exchange rates

Question

An autonomous short term capital inflow or reduced capital outflow results in a a rightward shift in aggregate demand under flexible exchange rates and 
A) leftward shift under fixed exchange rates
B) rightward shift in aggregate demand under flexible exchange rates and no shift under fixed exchange rates
C) leftward shift in aggregate demand under flexible exchange rates and a rightward shift under fixed exchange rates
D) leftward shift in aggregate demand under flexible exchange rates and a no shift under fixed exchange rates

Quizplus · Accepted Answer

The Answer of An autonomous short term capital inflow or reduced capital outflow results in a a rightward shift in aggregate demand under flexible exchange rates and 
A) leftward shift under fixed exchange rates
B) rightward shift in aggregate demand under flexible exchange rates and no shift under fixed exchange rates
C) leftward shift in aggregate demand under flexible exchange rates and a rightward shift under fixed exchange rates
D) leftward shift in aggregate demand under flexible exchange rates and a no shift under fixed exchange rates

An Autonomous Short Term Capital Inflow or Reduced Capital Outflow