The theory of portfolio choice suggests that the most important factor affecting the demand for domestic and foreign assets is the ________ on these assets relative to one another

Suppose the wage rate is $5, and the marginal revenue product (MRP) of the seventh worker at a yo-yo factory is also equal to $5. The labor market was originally purely competitive, but is then monopsonized without changing the MRP of the seventh worker. That means:

A. More workers will be hired but they will be paid lower wages B. More workers will be hired and they will be paid higher wages C. Fewer workers will be hired and they will be paid lower wages D. Fewer workers will be hired and they will be paid higher wages

For developing countries, one of the dangers inherent in the inflows of capital that finance investment is

A. increasing unemployment that accompanies foreign investment. B. rapid outflows of funds that put pressure on exchange rates. C. the deflation that accompanies inflows of foreign capital. D. the inflation that accompanies outflows of foreign capital.