The adoption of capital controls makes
A) everyone in the domestic economy better off.
B) some domestic residents better off and some worse off, although on average welfare increases.
C) some domestic residents better off and some worse off, although on average welfare decreases.
D) everyone in the domestic economy worse off.

Question

Quizplus · Accepted Answer

Capital controls can lead to inefficiencies and distortions in the economy, potentially decreasing overall welfare despite benefiting some individuals.

The Adoption of Capital Controls Makes