With Free Movement of Capital Internationally, the Principle of Convergence

question 60

Multiple Choice

With free movement of capital internationally, the principle of convergence postulates that:

• A) at some future time, external debt and external wealth will cancel each other out.
• B) poor nations will finally adopt capitalism and free markets.
• C) when the baby-boom generation retires, the investment rate will rise to compensate.
• D) rates of return on capital investment will be equalized worldwide as investors seek the highest return.

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Definitions:

Identical Twins

Identical twins are two siblings born at the same time, developed from one zygote that splits and forms two embryos, sharing exactly the same genetic materials.

Schizophrenic Disorders

A group of severe mental disorders characterized by disordered thoughts, perceptions, and emotions, manifesting as hallucinations, delusions, and impaired functioning.

Positive

Characterized by the presence rather than the absence of distinguishing features, often indicating approval or good outcomes.

Negative Symptoms

In psychiatry, these refer to the absence or reduction of normal emotions or behaviors, often seen in conditions like schizophrenia.