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If Capital (K)is Free to Move Internationally,then K Will Flow

Question 30

Multiple Choice

If capital (K) is free to move internationally,then K will flow from the nation with ___________,to the nation with ______________ until the returns have equalized between countries.


A) higher K returns; lower K returns
B) lower K returns; higher K returns
C) higher labor returns; lower labor returns
D) lower labor returns; lower capital returns

Correct Answer:

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