What Might Explain Why in Some Lower-Income Nations, Such as Mexico

question 1

Multiple Choice

What might explain why in some lower-income nations, such as Mexico, there are low levels of capital inflows?

• A) the reluctance of the government to allow higher levels of capital inflows
• B) the low return on capital
• C) the existence of different production functions, which would indicate a lower marginal product of capital
• D) identical production functions but other constraints on capital transfers

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