macroeconomices問題一問
3,Suppose that an automobile company owned entirely by USA opens a new factory in China.a. What sort of foreign investment would this represent?
b. What would be the effect of this investment on China's GDP?
c.International data show a positive correlation between political sability and strong economic growth,through what mechanism could political stability lead to strong economic growth? And through what mechanism could strong economic growth lead to political stability?
my answer (not 100% true)
a.foreign direct investment
b.according to Y=C+I+G+NX, I is increasing,so china's GDP is increasing.
c.我識做 what mechanism could political stability lead to strong economic growth
但唔知 what mechanism could strong economic growth lead to political stability..
THANKS FOR HELPING ME :)
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