In a country with floating exchange rates, the increase in the real income is the result of a(n) ...

In a country with floating exchange rates, the increase in the real income is the result of a(n) ________ in the money stock when capital mobility is ________.

A) increase; high or low
B) decrease; high or low
C) increase; high
D) decrease; low

Question 2 - The Solow residual helps explain growth that derives from

a. increasing the size of the labor force.
b. increasing the size of the capital stock.
c. increasing the capital-labor ratio.
d. anything except increases in the size of the labor force or the capital stock.

Question 3 - New forms of foreign investment do not include

a. management contracts
b. joint ventures
c. licensing
d. investment insurance
e. all of the above are new forms of foreign investment

Question 4 - Developing country governments often collaborate with foreign companies in

a. choosing inappropriate technologies
b. transferring assets back home during foreign exchange crises
c. promoting corporate goals over development goals
d. avoiding taxes
e. all of the above

Question 5 - What are the primary determinants of agricultural labor productivity?

What will be an ideal response?

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In a country with floating exchange rates, the increase in the real income is the result of a(n) ...

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