Once a country has lost its comparative advantage in producing a good, its income will be ________ and its economy will be ________ if it switches from producing the good to importing it
A) higher; less efficient B) lower; less efficient
C) higher; more efficient D) lower; more efficient
C
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If MRS > MRT, then the consumer is better off than at equilibrium
Indicate whether the statement is true or false
For a country pursuing a fixed exchange rate regime, what does the interest parity condition imply about domestic and foreign interest rates? Explain
What will be an ideal response?
Suppose Jared takes $200 from his savings account and holds it as cash. The immediate result of this transaction is that M2
A. Increases by $200 and M1 remains the same. B. Decreases by $200 and M1 remains the same. C. Remains the same and M1 increases by $200. D. And M1 do not change.
A decrease in the level of real GDP in the economy leads to
A) a leftward shift in the demand for money curve. B) a rightward shift in the demand for money curve. C) a leftward movement along the demand for money curve. D) a rightward movement along the demand for money curve.