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DO Supph REAL INTEREST RATE (Percent) REAL INTEREST RATE (Percent) 3 Demand NCO N 2 3 5 6 8 -3 -2 -1 0 1 2

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DO Supph REAL INTEREST RATE (Percent) REAL INTEREST RATE (Percent) 3 Demand NCO N 2 3 5 6 8 -3 -2 -1 0 1 2 3 14 5 LOANABLE FUNDS (Billions of pesos) NET CAPITAL OUTFLOW (Billions of pesos) Complete the first row of the table to reflect the state of the markets in Mexico. Real Interest Rate Net Capital Outflow (NCO) (Percent) (Billions of pesos) Initial state After capital flight

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