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AP Macroeconomics/Unit 3: National Income and Price Determination
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Foreign Direct Investment and Economic Growth
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If there is a decrease in foreign direct investment due to political instability, how would this likely affect domestic investment and economic growth?

A

Domestic investment increases, Economic growth slows

B

Domestic investment decreases, Economic growth slows

C

Domestic investment increases, Economic growth accelerates

D

Domestic investment decreases, Economic growth accelerates

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