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Brief Principles of Macroeconomics...

8th Edition
N. Gregory Mankiw
ISBN: 9781337091985

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BuyFindarrow_forward

Brief Principles of Macroeconomics...

8th Edition
N. Gregory Mankiw
ISBN: 9781337091985
Textbook Problem

In the 1990s and the first decade of the 2000s, investors from the Asian economies of Japan and China made significant direct and portfolio investments in the United States. At the time, many Americans were unhappy that this investment was occurring.

a. In what way was it better for the United States to receive this foreign investment than not to receive it?

b. In what way would it have been better still for Americans to have made this investment?

Subpart (a):

To determine

Foreign investment and its effects.

Explanation

Foreign investments will increase the capital stock, leading to higher productivity and wages...

Subpart (b):

To determine

Foreign investment and its effects.

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