Assume, for Vietnam, that the domestic price of textiles without international trade is lower than the world price of textiles. This suggests that, in the production of textiles,
a. Vietnam has a comparative advantage over other countries and Vietnam will import textiles.
b. Vietnam has a comparative advantage over other countries and Vietnam will export textiles.
c. other countries have a comparative advantage over Vietnam and Vietnam will import textiles.
d. other countries have a comparative advantage over Vietnam and Vietnam will export textiles.
b
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Suppose the Fed is targeting real GDP. If the interest rate is below its forecast and the Fed is convinced that this is due to commodity demand instability, it will ________ the money supply, which turns out to be exactly the wrong thing to do if the
low interest rate is in fact due to ________ money demand. A) raise, high B) raise, low C) lower, high D) lower, low
An American investor purchasing a Japanese government bond
a. creates a demand for dollars and a supply of yen in the foreign exchange market. b. creates a demand for yen and a supply of dollars in the foreign exchange market. c. causes the yen to depreciate. d. causes the dollar to appreciate.
Antitrust activity addresses
A. Inequity. B. Market power. C. Public goods. D. Macro instability.
It is difficult in economics to perform controlled experiments.
Answer the following statement true (T) or false (F)