If gains from trade are based solely on comparative advantage, and if all countries have the same opportunity costs of production, then there are no gains from trade.
Answer the following statement true (T) or false (F)
True
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In the money market, if the nominal interest rate is below the equilibrium level,
A) the demand for money curve will shift leftward. B) the quantity of money demanded exceeds the quantity of money supplied. C) the quantity of money supplied exceeds the quantity of money demanded. D) the supply of money curve will shift leftward. E) asset prices will rise.
Discuss what happened to the market prices on corporate securities relative to government securities during the Great Recession
What will be an ideal response?
In the simple Keynesian Cross model, the equilibrium level of real disposable income is determined by: a. the real interest rate
b. prices. c. aggregate expenditures. d. aggregate supply.
If an electric power plant does not bear the entire cost of the pollution it emits, it will
a. not emit any pollution so as to avoid the entire cost of the pollution. b. emit lower levels of pollution. c. emit an acceptable level of pollution. d. emit too much pollution.