Capital flight
The following graphs depict the market for loanable funds and the relationship between the real interest rate and the level of net capital outflow (NCO) measured in terms of the Mexican currency, the peso.
The Market for Loanable Funds in Mexico
Demand
Supply
0
1
2
3
4
5
6
7
8
7
6
5
4
3
2
1
0
-1
REAL INTEREST RATE (Percent)
LOANABLE FUNDS (Billions of pesos)
Demand


Supply


Mexican Net Capital Outflow
NCO
-4
-3
-2
-1
1
2
3
4
5
6
7
6
5
4
3
2
1
0
-1
REAL INTEREST RATE (Percent)
NET CAPITAL OUTFLOW (Billions of pesos)
NCO


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
Now, suppose that Mexico experiences a sudden bout of political turmoil, which causes world financial markets to become uneasy. Because people now view Mexico as unstable, they decide to pull some of their assets out of Mexico and put them into more stable economies. This unexpected shock to the demand for assets in Mexico is known as capital flight.
Shift the NCO curve to illustrate the effect of capital flight. Then, on the graph representing the market for loanable funds, shift the demand curve, the supply curve, or both to reflect the change caused by the shift in NCO.
Note: You will not be graded on your final placement of the curves on the graph, but you will need to shift them correctly in order to answer the questions that follow.
Determine the equilibrium interest rate after capital flight occurs, and enter it into the second row of the table. Then determine the level of NCO that occurs along the new NCO curve at the new equilibrium interest rate.
Finally, show the effect of the change in NCO on the market for foreign exchange by shifting either the supply curve, the demand curve, or both.
The Market for Foreign-Currency Exchange
Demand
Supply
REAL EXCHANGE RATE (Dollars per peso)
QUANTITY OF PESOS
Demand


Supply

Answers

Answer 1

Answer:

Explanation:YO

Answer 2

The graph depicts the market for loanable funds and the real interest rate and level of capital outflows in terms of Mexican currency is given.

The loanable funds are funds that can be shown on the graph by the interactions of the borrower and the saver. Thy is a variation in the Market model but is brought nd sold in Money. Borrowers demand funds and save supply funds. In 2020 the net capital outflow of Mexico was 0.5%. Due to the fluctuation in the GDP and sequent capital reinvestments.

Learn more about the graphs depicting the market for loanable funds and the relationship between the real interest.

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Related Questions

How well do you know the language of Communism? Match the term in
column 1 with the definition in column 2.
Marxism
?
Theory and practice
derived from the writings
of Karl Marx
Bourgeoisie
?
Book written by Karl Marx
The Communist
Manifesto
?
Wealthy property owners
who exploit the working
class
Socialism
?
?
Government-controlled
social and economic
equality and cooperation

Answers

Answer:

Marxism

Theory and practice derived from the writings of Karl Marx

Bourgeoisie

Wealthy property owners who exploit the working class

Book written by Karl Marx

The Communist

Socialism

Government-controlled social and economic equality and cooperation

things that people fell for but not acually true

Answers

Answer:

Fun fact, the earth does not orbit the sun

Nobody's life is perfect on social media, so to say this is the right words, "my life is perfect on social media"

Isaac Newton did not "discover" gravity when an apple fell on his head

Pluto is still a planet

Explanation:

Let me say it all so you can copy:

The earth orbits the sun

My life is perfect on social media

Isaac Newton descovered gravity when an apple fell on his head

Pluto is not a planet

I need help on choosing which one. Plz Help

Answers

Answer:

The second red box from left to right.

Explanation:

This question says the greatest increase meaning the largest jump of annual water temperature. The first and third red boxes are very small increases in temperature with the first one not really having an increase at all. The fourth and final box does not even have an increase but a decrease leaving the second box to be our answer due to its large increase in temperature.

Which best explain why the sun maintains its size and shape

Answers

In other words, its own weight keeps the Sun from growing larger. ... the inward pull of gravity that determines the size of any star.
The Sun maintains its size and shape against the outward pressure of fusion energy by the force of gravity. In other words, its own weight keeps the Sun from growing larger. It is the stable balance of outward gas pressure vs. the inward pull of gravity that determines the size of any star.

HELP!!!!!!
Which of the following is the most likely way in which a volcanic event off the
coast of Japan could significantly affect the coast of California?
A. An undersea volcano could cause a mass of warm water that
triggers a storm that crosses the ocean.
B. Seafloor spreading could cause crustal subduction across the
ocean.
C. An undersea earthquake could cause a tsunami that crosses the
ocean.
D. A lava flow could cause a raft of pumice that travels across the
ocean and clogs harbors.

Answers

Answer:

  C. An undersea earthquake could cause a tsunami that crosses the ocean.

Explanation:

Of the various scenarios listed, the most common and most likely is the causing of a tsunami.

Analyze the image below and answer the question that follows.


Two tectonic plates push toward each other labeled with arrows.

Image courtesy of USGS


At the type of plate boundary shown in the image above, two plates are colliding. Which type of plate boundary is shown in this image?

A.

divergent

B.

separating

C.

convergent

D.

transform


Please select the best answer from the choices provided

A

B

C

D

Answers

Answer:

These are convergent boundaries because they push towards each other.

Answer: C) Convergent

Explanation:

Hope this helps!

Mark me brainliest!

Pls and Ty!

pls someone
Government can best be described as __________.
A.
a form or system of rule
B.
a national banking system
C.
the basic unit of currency used by the European Union
D.
the ability to deal with situations and issues without provoking hostility

Answers

A is the right answer

What change occurred on the island of Clipland that caused natural selection?
a. food availability
b. weather pattern changes
c. a hurricane
d. land changes

Answers

Answer:

C i think

Explanation:

Which of the following describes a challenge presented by Canada's population? Question 5 options: the cost of government-funded health care increased pollution and high crime in cities the cost of child care in rural areas lack of housing in urban areas

Answers

Answer:

the cost of government-funded health care.

Explanation:

The Canadian healthcare is one which is being run as a publicly funded Healthcare system. As reports have it that over 70% of health care coverage is being shouldered by the government of Canada. The Canadian government according to reports, the Canadian government spends up 11% of their gross domestic product on public health care provision to its citizens. With increase population and migration, the cost of government funded health care is a major point of concern as data shows an increase in cost trend over the years.

Answer:

the cost of government-funded health care

Explanation:

Where does soil go during farming?
What are NEW techniques farmers use that are different than the past?

Answers

Answer:

The soil doesn't go any other place during farming

Soil and Water Sensors.

Weather Tracking. ...

Satellite Imaging. ...

Pervasive Automation. ...

Minichromosomal Technology. ...

RFID Technology. ...

Vertical Farming.

Explanation:

Some of the NEW techniques that farmers use that are different than the past are already listed above.

These technique helps the farmer to better predict and control some factors that were difficult or impossible to do in the past, such as using satellite imagine and tracking weather.

what is the major river that flows north and east in India

Answers

Answer:

Brahmaputra

Explanation:

i think this is the one

The Brahmaputra River System

The Brahmaputra is known in different names along its course. Originating in the east of Kailash Mountain, it flows east of the Mansarovar lake along the Indus Tsangpo sutures known as Tsangpo.

which of the following statements accurately describes the influence of religion on the government of India A. india is officially a hindu state with a large Islamic minority within its population B. although it has a large population of Hindu followers, India is now officially and Islamic State C. india has always been a secular country D. none of the above​

Answers

Answer:

A. India is officially a hindu state with a large Islamic minority within its population

Explanation:

The statement that accurately describes the influence of religion on the government of India is option A which states that India, though officially a Hindu state, has a large Islamic minority within its population.

This is true because India has majority of Hindus while Islam is in the minority.

The biotic potential of a population

Answers

Answer:

                                 The Biotic potential:

It is the ability of a population of any living species of an organism to increase under standard or ideal environmental conditions. The ideal condition could be specific to a specific organism such as sufficient food supply, no predators, and a lack of disease.

The primary determining factors for biotic potential are the rate of reproduction and the size as it is nothing but the maximum number of individuals a species can produce in a population. Generally, these conditions are not possible in nature as biotic factors always interact and limit the biotic potential.

How many states are there in the United States Of America?​

Answers

Answer:

50

There are fifty (50) states and Washington D.C.

Hope it helps :)

What property of Venus's continents is not shared with Earth's continents? They cover only a fraction of the entire surface. They rise above surrounding regions of the crust. They comprise large land masses. They were formed by tectonic activity. All of the items listed apply both to Earth and Venus.

Answers

Answer: All of the items listed apply both to Earth and Venus.

Explanation:

Venus has two continents which cover only a fraction of the entire planet just like the seven continents of Earth do on Earth. These continents rise up above the surrounding regions of the crust even though on Earth the surround regions are the oceans but on Venus it is land.

These continents comprise large land masses with Venus' two continents being the size of Australia and South America respectively. Just like on Earth, the continents on Venus were formed by tectonic activity resulting from tectonic plates crashing into one another.

Which of the following is a renewable resource?

Coal

Ice

Rock salt

Helium gas

Answers

Answer:

ice is an example of a renewable resource

what is the best of the 7 natural wonders​

Answers

These 7 natural wonders of the world include the Northern Lights, the Grand Canyon, Paricutin, Mount Everest, Harbor of Rio de Janeiro, Victoria Falls, and the Great Barrier Reef.

Some methods of __________ encourage erosion.

cutting lumber
faulting
identifying rocks
swimming

Answers

Answer:

  (a) cutting lumber

Explanation:

Some methods of cutting lumber destroy both the forest and the ground cover, making rain runoff and erosion more likely.

Some methods of cutting lumber encourage erosion.

What is the purpose of a geological time scale ?
It used to predict natural disaters throughout Earth's history.
It is used to present the correct sequence of events in the Earth's history.
It is used to determine the absolute dates in years for different periods.
It used to create a naming system for flora and fauna.

Answers

Answer: B. It is used to present the correct sequence of events in the Earth’s history.

Explanation: On Edge!!!!!!!!! :)

The geologic time scale is the time scale of the entire planet's geologic history and depicts the manner in which earth was formed and is evolving.

The table can be used to predict events and also explains the origin and evolution of the planet. Hence the option B the sequences in the history of the earth is correct.

Learn more about the geological time scale.

brainly.com/question/375059.

what percentage of coral has been lost from the Great Barrier Reef since 1985 A. 30% B. 45% C. over 50% D. nearly 75%​

Answers

The answer is a 30 percent

0.52in=X A magnifying glass has a scale factor of 3.1. An original ant is 0.48 inches big. How big is the magnified ant?​

Answers

Answer:

0.50

Explanation:

just guessing not sure

Why can't an average annual temperature and average annual precipitation tell you about climate?

Because a single average does not show you a pattern over the course of years,

Because climate only concerns precipitation and not temperature

Because climate only concerns temperatures and not precipitation.

Because it doesn't reveal the actual location on the surface.

Answers

Answer:

Because a single average does not show you a pattern over the course of years

Explanation:

An average annual temperature and average annual precipitation cannot accurately tell you about climate because a single average does not show you a pattern over the course of years.

HELP!!!!!!
How do the mountains in western Washington most likely affect the weather
in the area to the east of them?
A. They make it hot by increasing the altitude.
B. They make it cold by casting a long shadow.
C. They make it dry by blocking rain from the west.
D. They make it wet by trapping the larger clouds.

Answers

Answer:

They make it dry by blocking rain from the west.

Explanation:

Answer:

How do the mountains in western Washington most likely affect the weather? answer C.

Say 3 things that happened to Cinderella that were mean and unfair.

Answers

She was treated as a servant, she wasn’t allowed to go to the ball, and her stepsister’s got dresses and treated her as their seamstress.

characteristics of an active cell as in ict​

Answers

ICT has been the information communication and technology. The spreadsheet in ICT has been consisting of the intersection of rows and columns. The intersection has been termed as a cell.

The active cell in the spreadsheet has been the highlighted cell in the spreadsheet. It helps in the identification of the cell on which work has been performed. In a new spreadsheet, the active cell has been the first cell from the row and column intersection.

For more information about the active cell, refer to the link:

https://brainly.com/question/9550907

To create a land breeze Group of answer choices the cool air over the land rises, creating low pressure. Warm air over water sinks, creating high pressure. This creates an offshore breeze. the warm air over the land rises, creating low pressure. Cool air over water sinks, creating high pressure. This creates an offshore breeze. the warm air over the land sinks, creating high pressure. Warm air over water rises, creating low pressure. This creates an offshore breeze. the cool air over the land sinks, creating high pressure. Warm air over water rises, creating low pressure. This creates an offshore breeze.

Answers

Answer:

the warm air over the land rises, creating low pressure. Cool air over water sinks, creating high pressure. This creates an offshore breeze.

Explanation:

During the daytime, the air over land is warmed due to the intense heating from the sun and become lighter and drifts up wards later on during the night this air is replaced by the cold air from oceans bodies and as the cool air sinks it floats over the land and this called as land breeze.

If an airplane flies North over the North Pole to get from New York City to Stockholm, Sweden, its course saved fuel and time based on the principle of…

Answers

Answer:

Green chemistry.

Explanation:

Many flights between the Europe and north America are done by flying over the north pole and this is done to cut the time and save fuel costs.

The airplanes saved fuel and time based on the principle of great circle route.

The principle of great circle route asserts the shortest distance between two places on the earth lies on the arc of a great circle.

Hence, most of airplane flies on the route principle to save cost and time.

Therefore, the airplanes saved fuel and time based on the principle of great circle route.

Read more about great circle route

brainly.com/question/639425

Stations below sea level would report a sea level pressure that is greater than the station pressure. Group of answer choices True False

Answers

Answer:

False.

Explanation:

Stations present below sea level would have sea level pressure that is not greater than the station pressure because the station has also the pressure of the sea on it that make the pressure higher than sea level while on the other hand, the sea level has the pressure of the gases that is present in the atmosphere which put pressure on the sea so that's why we can see that station pressure is higher than sea level.

Answer:

False

Explanation:

A station below sea level would report a sea level pressure that is lower that the station pressure. This is due to the station being below the sea level and vise versa.

Match the items with each other.

a. I reset the fuses and the light still doesn't come on.
b. A fuse must have blown
c. The tight butt may be dead,
d. The electricity may be out The light did not come on

1. Observation
2. Interence

Answers

Answer:

a. I reset the fuses and the light still doesn't come on.  --  Observation

b. A fuse must have blown  --  Interence  

c. The tight butt may be dead,   --  Observation

d. The electricity may be out The light did not come on  --  Interence

Explanation:

The observation is the act of observing something or someone carefully to gain information.  Interence is the process of interfering between two or more things.

de acuerdo con la clasificación de köppen,los climas de la zona ecuatorial se caracterizan por ser predominante mente cálidos y húmedos.esta condición climática se debe a:A) alta radiación solar que lleva a esta sonas ecuatoriales , los cuales origuinan lluvias todo el año. B)existencias de grandes cadenas montañosas en las sonas ecuatoriales,los cuales origuinan lluvias todo el año C) influencias de masas de aire procedentes de los polos, las cuales están cargadas de una gran cantidad de agua.D) influencia de las cuatro estaciones en esta zona, las cuales permiten que ayan veranos planetas e inviernos.pliiisssss porfa​

Answers

La respuesta correcta es la A. Alta radiación solar que lleva a esta zonas ecuatoriales, los cuales originan lluvias todo el año.

Explanation

La clasificación de Köppen es una clasificación climática creada por el geógrafo ruso Vladimir Koppen en el año 1900, en el que propone un modelo para agrupar los climas naturales de la tierra a partir del rango de precipitaciones anuales y la temperatura media anual de cada lugar. Según esta clasificación existen cerca de treinta clasificaciones de clima en todo el mundo.

Específicamente la zona ecuatorial según Koppen se caracteriza por un alto rango de precipitaciones anuales y altas temperaturas en la mayoría del territorio durante todo el año, por lo que se clasifica como un área de clima tropical. Esta característica se debe a que es la zona que recibe los rayos solares de forma directa durante todo el año (originando la ausencia de estaciones climáticas) lo que origina el movimiento convectivo de corrientes de aire, formado nubes de desarrollo vertical (Cumulonimbus) que producen abundantes precipitaciones durante todo el año. De acuerdo a lo anterior, la respuesta correcta es la A.

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