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Hello, here is a question I was given on a macroeconomics assignment. I'm not sure what the answer is as the definition of capital flight
Hello, here is a question I was given on a macroeconomics assignment. I'm not sure what the answer is as the definition of capital flight is unsure to me. Could you please help?
Question: Mexico suffered from capital flight in 1994. What happened to Mexico's real interest rate and the peso?
Given Answers:
A. The real interest rate rose, and the peso depreciated.
B. The real interest rate rose, and the peso appreciated.
C. The real interest rate fell, and the peso depreciated.
D. The real interest rate fell, and the peso appreciated.
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