Solved

In the Long Run, If All Resources Can Move Within

Question 145

Multiple Choice

In the long run, if all resources can move within a nation, an inflow of FDI will:


A) increase production in the capital-intensive sectors as capital becomes cheaper.
B) increase production in the labor-intensive sector as capital becomes less desirable.
C) lower wages.
D) decrease the production of capital-intensive goods.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions