The law of variable proportions is associated with the: MCQ with Answer and Explanation

Explanation:
In a liquidity trap, interest rates are already so low that people prefer to hold cash, and further increases in money supply do not lead to a fall in interest rates or increase in investment.

Explanation:
Foreign direct investment is recorded in the capital account. Merchandise trade, services (including software), income and transfers form the current account.

Explanation:
Horizontal equity is the principle that taxpayers with equal capacity to pay (usually measured by income or wealth) should bear equal tax burdens.