A Developing Economy Is Considering Restricting the Amount of Money

question 97

Multiple Choice

A developing economy is considering restricting the amount of money its citizens can invest abroad. What might the purpose of this restriction be?

• A) to increase the dependency of the economy on developed economics
• B) to increase capital formation by forcing its citizens to invest in their own country
• C) to reduce the nation's trade deficit so that interest rates will be reduced and capital formation will increase
• D) to increase the degree of equality in the income distribution

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Definitions:

Aversion

A strong dislike or disinclination towards something, often used in psychological contexts to describe responses to unpleasant stimuli.

Ergonomic Principle

Refers to design considerations that maximize productivity by minimizing operator fatigue and discomfort.

Unfamiliar

Not known or recognized previously, often causing uncertainty or a lack of comfort.

School Psychologist

A professional who works within educational institutions to support the emotional, psychological, and academic development of students.