When FDI Occurs, What Are the Long­run Effects of FDI

question 45

Multiple Choice

When FDI occurs, what are the long­run effects of FDI
On industry output in the recipient nation?

• A)There is no change in either the output of the capital­intensive or the labor­intensive industry.
• B)The labor­intensive industry expands; the capital­ intensive industry contracts.
• C)The capital­intensive industry expands; the labor­ intensive industry contracts.
• D)Both capital­ and labor­intensive industries expand in the same proportion.

Examine the role of consumer spending in economic growth and the effects of changes in this spending.

Identify and explain major economic theories related to consumer behavior, including the Permanent Income Hypothesis.

Explain the significance of housing costs in the average American consumer's monthly expenses and the related economic implications.

Discuss the influence of age and life cycle stages on saving rates and consumption patterns.

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Definitions:

Dopamine

Dopamine is a neurotransmitter involved in regulating mood, cognition, reward, and pleasure, among other functions.

Basolateral Nucleus

A region of the amygdala involved in memory consolidation and emotional responses, influencing both arousal and the processing of sensory information.

Conditioned Stimulus

A previously neutral stimulus that, after being paired with an unconditioned stimulus, elicits a conditioned response.

Unconditioned Stimulus

In classical conditioning, a stimulus that naturally and automatically triggers a response without any prior learning.