Suppose that A is a small open economy that takes world prices as given. What would be

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Suppose that A is a small open economy that takes world prices as given. What would be the effect on wages and rents in A if it were to experience an outflow of foreign capital? Use a diagram to explain your answer. Which groups would favor this capital outflow? Which would oppose it? Explain.

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International Economics

ISBN: 9780321783868

9th Edition

Authors: Steven Husted , Michael Melvin

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