What will likely be the impact of the large scale outflow of foreign capital on production possibility curve of the economy and why??
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2
Answer:
- Large scale outflow of foreign capital would lead to reduction in the resources available to an economy. ... This would then result in a downward shift in the production possibilities curve because the economy can now produce less of both commodities keeping in mind the reduction in available resources.
Explanation:
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Answered by
1
Answer:
the ppc will shift in rightward direction
Explanation:
because greater investment in domestic businesses will help in growth of business
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