Which of the following is correct about capital inflows?
Choose 1 answer:
(A) Capital inflows can only be negative
(B) Capital inflows can only be positive
(C) Capital inflows can be positive or negative, but never equal to zero
(D) Capital inflows can be positive, negative, or equal to zero
(E) Capital inflows always equal zero

Question

Accepted Answer

∻Solution∻ ‖ a ⋮ Definition of Capital Inflows: Capital inflows refer to the movement of capital into a country or economy from external sources. This can include investments, loans, and other financial transfers. ‖‖ b ⋮ Possible Values: Capital inflows can be positive, negative, or zero. Positive inflows indicate an increase in capital from external sources, negative inflows indicate a net outflow of capital, and zero inflows indicate no net change in capital. ‖ ∻Answer∻ ⚹ (D) Capital inflows can be positive, negative, or equal to zero ⚹ ∻Key Concept∻ ⚹ Capital inflows can have various values ⚹ ∻Explanation∻ ⚹ Capital inflows can be positive, negative, or zero, depending on the net movement of capital into or out of an economy. ⚹◊What impact can capital inflows have on a country's economy according to MicroEconomics theory?⍭ Generate me a similar question◊

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