Use the Following to Answer Question

question 32

Multiple Choice

Use the following to answer question:
Table 12.19
-(Table 12.19) The payoffs represent profits in thousands of dollars. Which of the following statements is (are) TRUE?

• A) I and III
• B) II
• C) II and III
• D) I, II, and III

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Definitions:

Capital Flight

The rapid movement of large sums of money or assets out of a country due to economic or political instability, leading to a decrease in domestic investment.

Interest Rate

The percentage of a loan amount charged by lenders to borrowers for the use of money, expressed as an annual percentage rate.

Net Capital Outflow

The difference between the domestic purchases of foreign assets and the foreign purchases of domestic assets, representing a nation's external investment in a given period.

Trade Quota

A government-imposed limit on the quantity or value of goods that can be imported or exported during a specified period.