The Republic of Karibo has been losing capital steadily over the last five years.As a result of this
A)its rate of unemployment has decreased.
B)the standard of living has fallen.
C)the impact of the recession has lessened.
D)the gap between the rich and poor has narrowed.
E)its economy has stabilized.

Question

Quizplus · Accepted Answer

A fast flow of capital means that individual countries or world regions can find themselves in trouble when companies and investors move their capital to invest it in more productive ways in other countries or world regions-often those with lower labor costs or rapidly expanding markets.When capital leaves a country, the results are higher unemployment, recession, and a lower standard of living for its people.

The Republic of Karibo Has Been Losing Capital Steadily Over