Which of the following is most likely to increase the net inflow of foreign capital?
a. an increase in the rate of inflation
b. a decline in real GDP as the economy falls into a recession
c. a reduction in domestic investment
d. an increase in the real interest rate in the loanable funds market
D
Economics
You might also like to view...
If workers and firms ignore inflation or form their inflation expectations adaptively, expansionary monetary policy will lower unemployment permanently
Indicate whether the statement is true or false
Economics
If productivity growth equals 3.0 percent, the contribution from capital growth 1.2 percent and the contribution from labor growth 2.0 percent, then output growth must equal ________
A) 2.2 percent B) 4.2 percent C) 6.2 percent D) 7.2 percent
Economics