Multiple Choice
Suppose that the real return from operating factories in France rises relative to the real rate of return in the United States. Other things the same, this will
A) increase U.S.net capital outflow and decrease French net capital outflow.
B) decrease U.S.net capital outflow and increase French net capital outflow.
C) only increase U.S.net capital outflow.
D) only increase French net capital outflow.
Correct Answer:
Verified
Correct Answer:
Verified
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