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The Effect of the International Movement of Capital Does Not

Question 25

Multiple Choice

The effect of the international movement of capital does not include:


A) the supply of capital declines in the source country.
B) an increase in the rate of return to capital in the source country.
C) the productivity of labor declines in the source country.
D) an increase in the rate of return to capital in the host country.
E) any benefits for owners of capital in either country.

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