If a Nation Is Experiencing an Inflow of Capital and a Balance

question 136

Multiple Choice

If a nation is experiencing an inflow of capital and a balance of trade deficit, this is a problem if

• A) the capital inflow is channeled into productive projects.
• B) the capital inflow is channeled into unproductive projects.
• C) the country's rate of unemployment is low.
• D) the investment rate of the country is already high.

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