New trade theory is very useful in explaining trade patterns
a. true
b. false
a. true
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What is the "good news" and the "bad news" about a higher value of the U.S. dollar?
What will be an ideal response?
If a country's currency is determined only by the demand and supply for that country's currency, the country is said to have a
A) fixed exchange rate. B) gold standard. C) managed float. D) floating exchange rate.
The spending multiplier equals 1/marginal propensity to save if an economy:
a. has a trade surplus. b. is open to international trade. c. does not trade with any other country. d. has a higher level of saving than consumption. e. reduces its investment expenditures to zero.
In the short run, a perfectly competitive firm will shut down if
a. its total costs exceed its revenues. b. its total variable costs exceed its revenues. c. its total fixed costs exceed its revenues. d. it can't earn a positive economic profit.