Multiple Choice
In the short run (specificfactors) model, what will
Happen to the rental rate on capital and the wage rate
When there is FDI in the country?
A) Both the rental rate on capital and the wage rate will increase.
B) Both the rental rate on capital and the wage rate will decrease.
C) The rental rate on capital will increase and the wage rate will decrease.
D) The rental rate on capital will decrease and the wage rate will increase.
Correct Answer:
Verified
Correct Answer:
Verified
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