The simple immigration model assumes that the capital stock is constant in each country. If this assumption is relaxed, then the:

A. Rise in business income in the low-wage country will increase the return on capital, which will increase the demand for labor

B. Fall in business income in the low-wage country will decrease the return on capital, which will decrease the demand for labor

C. Rise in business income in the low-wage country will decrease the return on capital, which will decrease the demand for labor

D. Fall in business income in the low-wage country will increase the return on capital, which will increase the demand for labor


B. Fall in business income in the low-wage country will decrease the return on capital, which will decrease the demand for labor

Economics

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