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Buoyant economy definition

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Final answer:

A buoyant economy refers to a thriving and expanding economy with high levels of economic growth. If a country's economy is booming because of consumer spending, it is less likely to experience capital flight compared to an economy driven by investment expenditure.

Step-by-step explanation:

A buoyant economy refers to a strong, expanding, and thriving economy. It is characterized by high levels of economic growth, increased consumer spending, low unemployment rates, and increased business activity. In a buoyant economy, there is a positive business cycle where businesses are expanding, investing, and creating jobs, which attracts financial capital inflows.

If a country's economy is booming because it decided to stimulate consumer spending, it is less likely to experience capital flight compared to an economy whose boom is caused by economic investment expenditure. This is because in a consumer-driven boom, increased consumer spending will generate revenue and contribute to economic growth, which can attract more financial capital. On the other hand, an economy that solely relies on investment expenditure may be more susceptible to capital flight if investors lose confidence in the investment opportunities.

5 votes
A buoyant economy is one in which most people feel that their economic circumstances are more secure and that their incomes are increasing

Simpler (for study method): circumstances = ☺ &
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