Q
Carmen Reinhart and Kenneth Rogoff explain the paradox of capital flows from poor to rich countries by ?
-
A
A. The brain drains from ldcs to dcs
-
B
B. The price role of political and credit-market risk in many ldcs
-
C
C. The law of increasing returns that implies that the marginal productivity of capital is higher in ldcs
-
D
D. The fat that the dc capital market is perfectly competitive
Correct Answer:
B. B. The price role of political and credit-market risk in many ldcs
