A statement that is generally true about capital in a large open economy is that it is:
A) perfectly mobile, and the country does not influence world financial markets.
B) perfectly mobile, and the country influences world financial markets.
C) not perfectly mobile, but the country does not influence world financial markets.
D) not perfectly mobile, but the country influences world financial markets.

Question

Quizplus · Accepted Answer

In a large open economy, capital is not perfectly mobile due to various frictions and regulations, but the country can influence world financial markets due to its size and economic impact.

A Statement That Is Generally True About Capital in a Large