The concept of comparative advantage leads to the conclusion that:
A) beneficial trade takes place if one country can produce everything more efficiently than another country.
B) trade will benefit the two countries if the relative costs of production differ in the two countries.
C) benefits from trade are possible only if all tariffs are eliminated.
D) everyone benefits from increased trade both in the short run and the long run.
Ans: B) trade will benefit the two countries if the relative costs of production differ in the two countries.
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Explain and demonstrate graphically how targeting nonborrowed reserves can result in federal funds rate instability
What will be an ideal response?
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