B 5
C 15
remaining 15 OF 15 QUESTIONS REMAINING The figure below shows the value of marginal product of capital for Country A and Country B. Suppose in isolation, Country's A return on capital is equal to $12. By opening up to international capital flows, how much would capital flow between Country A and Country B? (Note: Assuming seeking higher return is the only motivation for capital flows). *** 25 Country A Country B VMPKA Value of marginal product of capital in Country A 27 16 12 10 VMPKB 60 75 80 Total canital. etork 150 25 16 12 10 Value of marginal product of capital in Country B
B 5 C 15
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