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In the Diagram in Question #9 Above, If Restrictions on Capital

question 19

Multiple Choice

In the diagram in Question #9 above, if restrictions on capital flows were removed and capital was allowed to flow freely from the low-return country to the high-return country, then world output would rise by the amount of area __________.


Definitions:

Day Trading

The practice of buying and selling financial instruments within the same trading day, taking advantage of small price movements.

Arbitrageur

An investor who attempts to profit from price inefficiencies in different markets by simultaneously buying and selling equivalent assets.

Severe Decline

A significant drop in value, performance, or condition, often used in the context of markets or economic indicators.

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