Question

Assignment 4 If Great Britain experienced capital flight, which statement would best explain the effects? a. The supply of British pounds curve would shift left, which would make the real exchange rate of the British pound appreciate. b. The supply of British pounds curve would shift left, which would make the real exchange rate of the British pound depreciate. c. The supply of British pounds curve would shift right, which would make the real exchange rate of the British pound depreciate. d. The supply of British pounds curve would shift right, which would make the real exchange rate of the British pound appreciate.

          Assignment 4
If Great Britain experienced capital flight, which statement would best explain the effects?
a.
The supply of British pounds curve would shift left, which would make the real exchange rate of the British pound appreciate.
b.
The supply of British pounds curve would shift left, which would make the real exchange rate of the British pound depreciate.
c.
The supply of British pounds curve would shift right, which would make the real exchange rate of the British pound depreciate.
d.
The supply of British pounds curve would shift right, which would make the real exchange rate of the British pound appreciate.

Added by Shannon T.

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