Suppose That the Real Return from Operating Factories in Ghana

question 300

Multiple Choice

Suppose that the real return from operating factories in Ghana rises relative to the real rate of return in the United States. Other things the same,

• A)this will increases U.S. net capital outflow and decrease Ghanan net capital outflow.
• B)this will decreases U.S. net capital outflow and increase Ghanan net capital outflow.
• C)this will only increase U.S. net capital outflow.
• D)this will only increase Ghanan net capital outflow.

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Definitions:

Logistic Regression

A statistical model that estimates the probability of a binary outcome based on one or more predictor variables, using a logistic function.

Indicator Variable

A variable used in statistical modeling and analysis that takes on a value of 0 or 1 to indicate the absence or presence of a certain condition or effect.

Natural Logarithm

The logarithm to the base e (where e is approximately equal to 2.718281828), often used in mathematics and engineering.

Logistic Regression

A statistical method used for predicting a binary outcome from one or more predictor variables, modeling the probability of occurrence of an event by fitting data to a logistic curve.