A Finnish corporation builds a factory the produces ceiling fans in the United States. This is an example of Finish

a. foreign direct investment that increases Finnish net capital outflow.
b. foreign direct investment that decreases Finnish net capital outflow.
c. foreign portfolio investment that increases Finnish net capital outflow.
d. foreign portfolio investment that decreases Finnish net capital outflow.

a

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Differentiate between an income effect and a substitution effect

What will be an ideal response?

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