Principles of Economics, 7th Edition

Published by South-Western College
ISBN 10: 128516587X
ISBN 13: 978-1-28516-587-5

Chapter 25 - Part IX - Production and Growth - Problems and Applications - Page 546: 5

Answer

a) It was better for the Unites States to get the investment from Japan and China than to not invest at all since the United States would benefit from the economic growth derived from the investment.

Work Step by Step

b) The United States would have been better off if the investment came from the United States than from Japan or China since the gains from the investment would have stayed in the country (rather than the gains going to China or Japan).
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