A country that frequently uses capital controls:
A. will attract more investment.
B. decreases the risk for foreign investors.
C. increases the risk for foreign investors.
D. should see lower interest rates on its domestic bonds and lower prices.
Answer: C
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Refer to the above figure. If real disposable income is $30,000, saving is
A) $0. B) $4000. C) $5000. D) $6000.
Which of the following equals the ratio of the change in total revenues over the change in output?
A) total cost B) average revenue C) demand D) marginal revenue
If purchasing-power parity holds, when a country's central bank increases the money supply, a unit of money
a. gains value both in terms of the domestic goods and services it can buy and in terms of the foreign currency it can buy. b. gains value in terms of the domestic goods and services it can buy, but loses value in terms of the foreign currency it can buy. c. loses value in terms of the domestic goods and services it can buy, but gains value in terms of the foreign currency it can buy. d. loses value both in terms of the domestic goods and services it can buy and in terms of the foreign currency it can buy.
Compared to the 1948 – 1973 period, the period from 1973 to 1995 can be characterized as a period of
A. faster real GDP growth. B. faster labor productivity growth. C. slower labor productivity growth. D. lower labor force growth.