1. How does capital flight affect exchange rate?

Capital flight occurs in a country crisis, which affects that country. A lot of
state capital flows out of the country, causing currency values to decline.

How capital flight affects exchange rates. The exchange rate will decline when
a lot of foreign capital flows out. The cause:

1. Loss of investor confidence due to political influence in the country.

2. Investor distrust because many officials are corrupt.
3. Too high the country's debt.

The impact of the flight of capital which resulted in an economic crisis that
resulted in the destruction of the country's economy. And also prolonged political
factors.

2. Does GDP accurately reflect the nation's welfare?

It’s my opinion, this is correct because GDP can measure the development
/ progress of a country's economy. The factors that affect GDP are basically
caused by superior human resources and an established economy. That is what
causes the progress of a country.

3. What was the most significant result of the Marshall Plan on Politics?
a. The war-affected country which was economically and politically destroyed,
was helped by the economy because of the Marshall Plan.

b. The country will grow gradually from this assistance. And politically the
country will be safe.

c. Thanks to the Marshall Plan, it provides an example for other countries that we
must help each other for progress and common prosperity.

4. What is the significance of the development of production and the

productivity in modern economies?
The development of production and productivity is very important for the
modern economy because the development of production is influenced by human
resources. The process of changing production from an old product to a new one
can happen if we know what consumers want or the market. With product
development, at least the company will experience an increase.

Examples of the development of production and productivity in a modern

economy:
1. People who used to shop at traditional markets can now easily shop at
malls with modern facilities.
2. With the existence of gadgets or cellphones, people benefit greatly because
many applications now offer convenience in shopping.
3. People in the past in their activities still used very simple vehicles. For
example bicycles, rickshaws, carts etc. With the development of
production and productivity, people now enjoy a lot of convenience and
smoothness in their daily activities. For example, we see today many
motorbikes, cars, buses, etc.