Holding Everything Else Constant, a Decrease in Political Risk in a Country

question 283

Multiple Choice

Holding everything else constant, a decrease in political risk in a country will MOST likely cause:

• A)capital inflows into that country to increase.
• B)capital inflows into that country to decrease.
• C)the supply of loanable funds in that country to decrease.
• D)the country to become a politically riskier place to invest.

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Definitions:

General Tendencies

A term that refers to the common or usual patterns of behavior, thought, or emotion observed in an individual or group.

Alternate Form Reliability

A measure of reliability used to assess the consistency of test scores between different versions of the same test.

Test-retest Reliability

Test-retest reliability is a measure of consistency where the same test is administered to the same group of people at different times to assess the reliability over time.

Construct Validity

The extent to which a test or instrument accurately measures the theoretical, non-observable constructs it is designed to assess.