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If a Nation Is Experiencing an Inflow of Capital and a Balance

Question 136

Multiple Choice

If a nation is experiencing an inflow of capital and a balance of trade deficit, this is a problem if


A) the capital inflow is channeled into productive projects.
B) the capital inflow is channeled into unproductive projects.
C) the country's rate of unemployment is low.
D) the investment rate of the country is already high.

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