If a country's government reduced corruption and reformed its tax system so that businesses found operating there less risky, it's likely that this country's
a. net exports and net capital outflows would increase.
b. net exports would increase and its net capital outflows would decrease.
c. net exports and net capital outflow would decrease.
d. net exports would decrease and its net capital outflow would increase.
c
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The idea that investment in comprehensive education in developing countries leads to permanent increases in the rate of technological progress is an example of
A) a trade-off between human capital and technology. B) increasing economic inequality. C) capital deepening. D) new growth theory.
The equilibrium exchange rate is 0.70 euros per dollar. At this exchange rate, the quantity demanded equals the quantity supplied and is $1.3 trillion a day. If the exchange rate is now 0.80 euros per dollar, then
A) there is a shortage of dollars and the exchange rate falls. B) there is no change. C) there is a surplus of dollars and the exchange rate falls. D) there is a surplus of dollars and the exchange rate rises. E) there is a shortage of dollars and the exchange rate rises.