Advanced Placement (AP)

Westley is a citizen of Florin. He believes that the investment conditions in the neighboring country of Guilder are much better. Assume both countries have an open economy.
If other investors share Westley’s opinion, what will happen to net capital inflows and the supply of loanable funds in Guilder?

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Westley is a citizen of Florin. He believes that the investment conditions in the neighboring countr...

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