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Unformatted text preview: GNP be larger or smaller? Q6. In 1990s and the first decade of the 2000s, investors from the Asian economies of Japan and China made significant direct and portfolio investments in the U.S. At the time, many Americans were unhappy that this investment was occurring. a. In what way was it better for the U.S. to receive this foreign investment than not to receive it? b. Is what way would it have been better still for Americans to have made this investment? Q9. International data show a positive correlation between political stability and economic growth. a. Through what mechanism could political stability lead to strong economic growth? b. Through what mechanism could strong economic growth lead to political stability?...
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- Fall '11