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In the Short-Run (Specific-Factors) Model, Foreign Direct Investment Is Expected

Question 114

Multiple Choice

In the short-run (specific-factors) model, foreign direct investment is expected to cause a(n) ________in the return to capital and a(n) ________in the return to land in the receiving country.


A) decrease; decrease
B) increase; decrease
C) decrease; increase
D) increase; increase

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