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Holding Everything Else Constant, a Decrease in Political Risk in a Country

Question 443

Multiple Choice

Holding everything else constant, a decrease in political risk in a country will MOST likely cause:


A) capital inflows into that country to increase.
B) capital inflows into that country to decrease.
C) the supply of loanable funds in that country to decrease.
D) the country to become a politically riskier place to invest.

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