What will likely be the impact of large scale outflow of foreign capital on production Possibility Curve of the economy and why ?
What will likely be the impact of large scale outflow of foreign capital on production Possibility Curve of the economy and why ?
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Large-scale outflow of foreign capital from the economy will reduce resources and thus production potential of the country will fall. Fall in production potential, in turn, will shift the PPC downwards or PPC will shift to left.
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