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In the Diagram in Question #9 Above, If Restrictions on Capital

Question 20

Multiple Choice

In the diagram in Question #9 above, if restrictions on capital flows were removed and Capital was allowed to flow freely from the low-return country to the high-return country, Then national income (i.e., GNP) in country II would rise by the amount of area__________.


A) EAF
B) EFG
C) EAG
D) K2EAK1

Correct Answer:

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