The neoclassical theory of investment says both real interest rates and taxes are important determinants of investment

A capital outflow occurs when a

A) domestic resident purchases a domestic asset. B) domestic resident purchases a foreign asset. C) foreign resident purchases a domestic asset. D) foreign resident purchases a foreign asset.

A tradesman who purchases diamonds in a country where the price is low and sells them in another country where the price is high, can be said to be practicing:

a. arbitrage. b. speculation. c. derivatives trading. d. forecasting.