Which of the Following Is Not a Problem Created in the Home

question 38

Multiple Choice

Which of the following is not a problem created in the home country in association with multinational corporations who are engaged in foreign direct investment?

• A)loss of unskilled and semiskilled production jobs
• B)loss of high skill technical jobs and reduced return to capital
• C)loss of tax revenue and loss of tax base
• D)undermining of government's monetary policy

---

Definitions:

Loanable Funds

Money available for borrowing, which comes from savings that consumers and businesses put into the financial system.

Real Interest Rate

The interest rate adjusted for inflation, reflecting the true cost of borrowing or the true return on investment.

Nominal Interest Rates

are the stated interest rates on financial products or loans, not adjusted for inflation, indicating the actual rate of interest charged by lenders.

Real Interest Rates

The interest rate adjusted for inflation, reflecting the real cost of borrowing and the true return on savings.