Investment Will Occur in an Open Economy More Often Than

question 116

Multiple Choice

Investment will occur in an open economy more often than in a closed economy because:

• A) investment decisions have fewer constraints because investors and borrowers will compare the marginal product of capital in any nation with the world real interest rate.
• B) without information, investors often make poor investment decisions.
• C) governments like to subsidize overseas investment for domestic firms.
• D) international financial organizations prefer to lend for international investments rather than domestic ones.

---

Definitions:

Abdominal Distention

The condition of having an increased stomach or abdominal area due to reasons such as gas, fluid accumulation, or organ enlargement.

Loss of Control

A situation or feeling where an individual feels unable to manage or direct events, actions, or emotions, often leading to stress or anxiety.

Older Adult

An older adult typically refers to someone who is in the later stage of life, often considered to be ages 65 and older, with specific health, social, and support needs.

Cope with Loss

The process of managing grief and adapting to life after the death of a loved one or the ending of something significant.