Multiple Choice
Suppose Paul, a Romanian citizen, builds a telescope factory in Israel. Which of the following correctly identifies the effects of these expenditures?
A) They increase Romanian and Israeli net capital outflow.
B) They increase Romanian net capital outflow, but decrease Israeli net capital outflow.
C) They decrease Romanian net capital outflow, but increase Israeli net capital outflow.
D) They increase Romanian net capital outflow, but Israeli net capital outflow remain unchanged.
Correct Answer:
Verified
Correct Answer:
Verified
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