Multiple Choice
A developing economy is considering restricting the amount of money its citizens can invest abroad. What might the purpose of this restriction be?
A) to increase the dependency of the economy on developed economics
B) to increase capital formation by forcing its citizens to invest in their own country
C) to reduce the nation's trade deficit so that interest rates will be reduced and capital formation will increase
D) to increase the degree of equality in the income distribution
Correct Answer:
Verified
Correct Answer:
Verified
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