Question

Which statement describes capital flows?

पर्याय

• Labour services are sold and purchased at the wage rate

• Output is produced only for self-consumption

• Foreign capital may come into the domestic country and domestic capital may move to foreign countries

• Revenue is distributed as rent, interest, wages and profit

Answer 1

Capital flows include the movement of capital between countries. Foreign capital may enter the domestic country, while domestic capital may move to foreign countries.