Refer to Figure 11-1. Technological change is illustrated in the per-worker production function in the figure above by a movement from

Capital outflows occur if:

A) domestic interest rates are higher than foreign interest rates. B) domestic interest rates are lower than foreign interest rates. C) domestic and foreign interest rates are the same. D) none of the above.

Direct controls are considered inefficient because all firms are forced to pay the same costs.

Answer the following statement true (T) or false (F)