ign Bused by. O a. Political instability O b. Shifts away from the industrial sector towards the service sector Oc. Political stability Od. Policies in the International Monetary Fund There is evidence that a substantial amount of these financial (A) turn, (D) found their way into/out of the stock market, resulting in (B) the financial wealth of those holding stocks. And this could have fed the increase in investments in residential housing. O a. (A) outflows; (B) lower; (C) higher; (D) raised O b. (A) inflows; (B) lower; (C) lower; (D) decreased O c. (A) inflows; (B) higher, (C) higher; (D) raised O d. (A) outflows; (B) higher; (C) lower; (D) decreased Under a floating exchange rate regime, a is effective in increasing output, the exchange rate, and net exports. O a. O b. O c. Monetary expansion policy O d. Strong government Fiscal expansion policy Import restriction policy. stock prices. (C) stock prices, in

Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter20: Economic Growth
Section: Chapter Questions
Problem 9SCQ: Would the following events usually lead to capital deepening? Why or why not? A weak economy in...
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Capital flight is often caused by:
O a. Political instability
O b.
Shifts away from the industrial sector towards the service sector
O c.
Political stability
O d. Policies in the International Monetary Fund
There is evidence that a substantial amount of these financial (A)______found their way into/out of the stock market, resulting in (B) stock prices. (C) stock prices, in
turn, (D)_________ the financial wealth of those holding stocks. And this could have fed the increase in investments in residential housing.
O a. (A) outflows; (B) lower; (C) higher; (D) raised
O b. (A) inflows; (B) lower; (C) lower; (D) decreased
Oc. (A) inflows; (B) higher; (C) higher; (D) raised
O d. (A) outflows; (B) higher; (C) lower; (D) decreased
Under a floating exchange rate regime, a___________ is effective in increasing output, the exchange rate, and net exports.
O a. Fiscal expansion policy
Ob. Import restriction policy.
O c. Monetary expansion policy
Od. Strong government
Transcribed Image Text:Capital flight is often caused by: O a. Political instability O b. Shifts away from the industrial sector towards the service sector O c. Political stability O d. Policies in the International Monetary Fund There is evidence that a substantial amount of these financial (A)______found their way into/out of the stock market, resulting in (B) stock prices. (C) stock prices, in turn, (D)_________ the financial wealth of those holding stocks. And this could have fed the increase in investments in residential housing. O a. (A) outflows; (B) lower; (C) higher; (D) raised O b. (A) inflows; (B) lower; (C) lower; (D) decreased Oc. (A) inflows; (B) higher; (C) higher; (D) raised O d. (A) outflows; (B) higher; (C) lower; (D) decreased Under a floating exchange rate regime, a___________ is effective in increasing output, the exchange rate, and net exports. O a. Fiscal expansion policy Ob. Import restriction policy. O c. Monetary expansion policy Od. Strong government
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