Which of the following is true regarding investment?
A) Investment tends to have a larger impact on economic growth in countries with high levels of economic freedom because it is channeled to more productive uses.
B) Countries who see large inflows of foreign direct investment tend to have negative rates of economic growth as the foreign companies mainly take profits and resources out of the country.
C) Investment tends to be larger in countries with low levels of economic freedom because of the low wages present in these countries.
D) None of the above.
Correct Answer:
Verified
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