Capital flight is a barrier to economic growth in developing countries.
Answer the following statement true (T) or false (F)
True
You might also like to view...
Explain how the market can reduce the incentive for credit-rating firms to take advantage of conflicts of interest
What will be an ideal response?
Which of the following is a component of aggregate demand?
A. Net exports B. Income C. Government revenues D. Taxes
When two variables repeatedly change at the same time, there must be a causal relationship between them
a. True b. False Indicate whether the statement is true or false
Assume that business investment spending rises, and the increase is funded by greater borrowing in the capital markets. If the nation has low mobility international capital markets and a fixed exchange rate system, what happens to the real GDP and net nonreserve international borrowing/lending balance in the context of the Three-Sector-Model? a. Real GDP rises and net nonreserve international
borrowing/lending balance becomes more positive (or less negative). b. Real GDP rises and net nonreserve international borrowing/lending balance becomes more negative (or less positive). c. Real GDP falls and net nonreserve international borrowing/lending balance becomes more positive (or less negative). d. Real GDP and net nonreserve international borrowing/lending balance remain the same. e. There is not enough information to determine what happens to these two macroeconomic variables.