Assume that foreign capital flows from a nation increase due to political uncertainly and increased risk. If the nation has highly mobile international capital markets and a fixed exchange rate system, what happens to the real risk-free interest rate and current international transactions balance in the context of the Three-Sector-Model?
a. The real risk-free interest rate rises and current
international transactions balance becomes more positive (or less negative).
b. The real risk-free interest rate rises and current international transactions balance becomes more negative (or less positive).
c. The real risk-free interest rate and current international transactions balance remain the same.
d. The real risk-free interest rate rises and current international transactions balance remains the same.
e. There is not enough information to determine what happens to these two macroeconomic variables.
.A
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Corruption
A) curtails economic growth. B) is eliminated by foreign direct investment. C) raises the rate of growth as bribes enhance income. D) acts as a magnet for foreign direct investment.
Based on general trends, which employee will earn the most?
a. Raul, who has a doctorate b. Lindsey, who dropped out of high school c. Carmi, who took some online classes after high school d. Benji, who earned an associate’s degree