What are the costs of capital mobility?
What will be an ideal response?
The cost is potential macroeconomic crisis from volatile capital flows.
You might also like to view...
Using the HO model, assume that the United States is capital abundant and Mexico is labor abundant. If soybeans are capital intensive and avocados are labor intensive,
A) Mexico will produce more soybeans once trade is introduced. B) the United States will produce more avocados once trade is introduced. C) avocado prices in the United States will fall once trade begins. D) soybean prices in Mexico will rise once trade begins.
Which of the following is the primary determinant of aggregate demand in the simplest Keynesian expenditure model?
a. consumption spending b. net exports c. investments d. government purchases
The lack of long-term economic development in LDCs is evidence that economic markets fail to function efficiently
Indicate whether the statement is true or false
Low inflation rates and high inflation rates impose different costs on society
a. True b. False Indicate whether the statement is true or false