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Economics
MEDIUM
ENGLISH
Economics
Carmen Reinhart and Kenneth Rogoff explain the paradox of capital flows from poor to rich countries by ?
A
the brain drains from LDCs to DCs
Option A
the price role of political and credit-market risk in many LDCs
Correct answer
C
the law of increasing returns that implies that the marginal productivity of capital is higher in LDCs
Option C
D
the fat that the DC capital market is perfectly competitive
Option D
Correct answer: B
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