The following graphs depict the market for loanable funds and the relationship between the real interest rate and the level of net capital outflow (NCC measured in terms of the Mexican currency, the peso. REAL INTEREST RATE (Percent) 8 7 6 5 4 3 لیا 2 0 The Market for Loanable Funds in Mexico 0 1 2 Supply 3 4 6 5 7 LOANABLE FUNDS (Billions of pesos) Demand Initial state After capital flight 8 ? REAL INTEREST RATE (Percent) Complete the first row of the table to reflect the state of the markets in Mexico. Real Interest Rate (Percent) Net Capital Outflow (NCO) (Billions of pesos) Mexican Net Capital Outflow 6 5 4 3 NCO H + 0 4 3 2 1 0 1 2 3 4 5 6 NET CAPITAL OUTFLOW (Billions of pesos) ?
The following graphs depict the market for loanable funds and the relationship between the real interest rate and the level of net capital outflow (NCC measured in terms of the Mexican currency, the peso. REAL INTEREST RATE (Percent) 8 7 6 5 4 3 لیا 2 0 The Market for Loanable Funds in Mexico 0 1 2 Supply 3 4 6 5 7 LOANABLE FUNDS (Billions of pesos) Demand Initial state After capital flight 8 ? REAL INTEREST RATE (Percent) Complete the first row of the table to reflect the state of the markets in Mexico. Real Interest Rate (Percent) Net Capital Outflow (NCO) (Billions of pesos) Mexican Net Capital Outflow 6 5 4 3 NCO H + 0 4 3 2 1 0 1 2 3 4 5 6 NET CAPITAL OUTFLOW (Billions of pesos) ?
Chapter21: Financial Markets, Saving, And Investment
Section: Chapter Questions
Problem 9P
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