Multiple Choice
In the diagram in Question #9 above, if restrictions on capital flows were removed and capital was allowed to flow from the low-return country to the high-return country, then total output in country I __________.
A) would increase by the amount of area K2EAK1
B) would decrease by the amount of area K2EFK1
C) would decrease by the amount of area K2EGK1
D) would decrease by the amount of area EFG.
Correct Answer:
Verified
Correct Answer:
Verified
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