Answered: True/False and Explain If the real rate…

True/False and Explain If the real rate of return on investment is higher in the US than in Canada, capital will tend to flow out of the US and into Canada.

MACROECONOMICS

14th Edition

ISBN:9781337794985

Author:Baumol

Publisher:Baumol

Chapter7: Economic Growth: Theory And Policy

Section: Chapter Questions

Problem 5DQ

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True/False and Explain

If the real rate of return on investment is higher in the US than in Canada, capital will tend to flow out of the US and into Canada.

Definition Definition Percentage gain or loss from a specific investment over time. The rate of return is the difference between the closing and initial values of an investment divided by the initial value of the investment. The closing value includes any intermediate cash flows such as dividends or interest amounts.

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