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The following question is based on the international factor movement problem. Suppose the capital movement is allowed across borders and the amount of movement from

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The following question is based on the international factor movement problem. Suppose the capital movement is allowed across borders and the amount of movement from home to abroad is K*K. Under such circumstance, how much is the foreign income change? (Hint: you need to calculate the foreign income before and after the capital movement)

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MPKH MPK F h A b TH H C K * K

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