If Foreigners Are Restricted in Their Ability to Buy Investments

question 74

Multiple Choice

If foreigners are restricted in their ability to buy investments in a country then that government is imposing:

• A) controls on capital inflows.
• B) controls on capital outflows.
• C) controls on both capital inflows and outflows.
• D) fixed exchange rates.

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Definitions:

Indirect Business Taxes

Taxes levied on goods and services rather than on income or profits, affecting the pricing of these items.

Transfer Payments

Payments made by governments to individuals or groups without receiving any goods or services in return, often aimed at providing financial assistance or subsidies.

Nominal Gross Domestic Product (GDP)

The total worth of all end products and services created inside a country during a specified time frame, calculated in present-day prices without making revisions for inflation effects.

Base Year

A reference year against which financial or economic data is compared, often used in index numbers and economic models.