Which One of the Following Statements Is TRUE for Norway

question 59

Multiple Choice

Which one of the following statements is TRUE for Norway, a non-euro country?

• A) Of course, owners of capital that cannot be moved cannot avoid more of the economic stability loss due to fixed exchange rates when Norway's economy is open to capital flows.
• B) Even owners of capital that cannot be moved can avoid more of the economic stability loss due to fixed exchange rates when Norway's economy is open to capital flows.
• C) Owners of capital that cannot be moved can avoid more of the economic stability loss due to fixed exchange rates when Norway's economy is closed to capital flows.
• D) Even owners of capital that can be moved can avoid more of the economic stability loss due to fixed exchange rates when Norway's economy is closed to capital flows.
• E) Only owners of capital that can be moved can avoid more of the economic stability loss due to fixed exchange rates when Norway's economy is open to capital flows.

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Definitions:

Merchandise

Goods or products that are bought, sold, or traded, often in a retail environment.

Comparative Advantage

The capacity of a person or a team to perform a specific financial task more effectively than other tasks.

Consumption Habits

The patterns or behaviors of individuals or groups in purchasing and using goods and services.

Dumping

Selling goods in a foreign market at a price below their cost of production or below the price in the domestic market.