Question: Capital flight is defined as ________ when ________. Question 12 options: a gradual decrease in net capital inflows; foreign savers change their saving patterns a

Capital flight is defined as ________ when ________.

Question 12 options:

a gradual decrease in net capital inflows; foreign savers change their saving patterns

a sudden increase in net capital inflows; foreign savers gain confidence

the amount of capital flows from one country to the next; interest rates change

a sudden decrease in net capital inflows; foreign savers lose confidence

In the open-economy version of the loanable funds model, the supply of loans comes from:

Question 13 options:

net capital inflows plus savings.

domestic savers only.

capital inflows minus capital outflows.

net capital inflows.

The expectations theory of the term structure of interest rates ignores:

Question 14 options:

the role of expectations.

different maturities.

None of the answers are correct.

risk.

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