Discuss the rationales for foreign financing of investment in developing actions and explain how developing countries benefit from international capital investment
What will be an ideal response?
The primary motivation for foreign investment in developing nations is the potential for high rates of return on large amounts of untapped resources. Developing countries benefit from international capital investment because they do not have the internal funds to be able to support projects that will lead to economic growth.
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According to the economy's self-correcting mechanism, how does the economy return to potential output following a negative demand shock? How is the recovery process different, if the government implements a policy of economic stimulus?
What will be an ideal response?
When the amount supplied is greater at each price, there is a(n)
A) rightward shift in the supply curve. B) leftward shift in the supply curve. C) upward movement along the supply curve. D) downward movement along the supply curve.