When economists talk about developing countries experiencing flight of capital they mean?
Correct answer: D. people investing money abroad rather than in their own country
- A. money lent to the country being immediately invested abroad
- B. People investing their money in urban business rather than agriculture
- C. money moving around financial institutions rather than being invested in production
- D. people investing money abroad rather than in their own country
Explanation
Capital flight occurs when residents transfer or invest their financial assets abroad instead of investing them domestically. This reduces the funds available for production and development at home.
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