Multiple Choice
During the past 20 years, there has been substantial FDI in China. What are the expected short-run effects of this FDI upon the rental rate on capital and wages in China?
A) The rental rate should increase and wages should decrease.
B) The rental rate and wages should both increase.
C) The rental rate and wages should both decrease.
D) The rental rate should decrease and wages should increase.
Correct Answer:
Verified
Correct Answer:
Verified
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