Carmen Reinhart and Kenneth Rogoff explain the paradox of capital flows from poor to rich countries by ?

the law of increasing returns that implies that the marginal productivity of capital is higher in LDCs

the brain drains from LDCs to DCs

the price role of political and credit-market risk in many LDCs

the fat that the DC capital market is perfectly competitive

Carmen Reinhart and Kenneth Rogoff explain the paradox of capital flow

1.	Carmen Reinhart and Kenneth Rogoff explain the paradox of capital flows from poor to rich countries by ?
A.	the brain drains from LDCs to DCs
B.	the price role of political and credit-market risk in many LDCs
C.	the law of increasing returns that implies that the marginal productivity of capital is higher in LDCs
D.	the fat that the DC capital market is perfectly competitive
Answer» C. the law of increasing returns that implies that the marginal productivity of capital is higher in LDCs

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Carmen Reinhart and Kenneth Rogoff explain the paradox of capital flows from poor to rich countries by ?

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