When each country specializes in producing the good for which it has a comparative advantage:
A. both countries may benefit.
B. both countries always enjoy equal gains from trade.
C. the country that is bigger will gain more surplus.
D. the country with the weaker economy will gain more surplus.
A. both countries may benefit.
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A decrease in savings deposits would ____ M1 and ____ M2. a. increase; increase
b. not change; increase. c. decrease; decrease. d. not change; decrease.
An example of a quota that protects an American industry is the quota on
a. tourists entering the country. b. sugar imports. c. sales of oil products to foreign countries. d. purchases of military hardware to foreign dictators. e. All of the above are examples of protective quotas.
Which of the following would appear on the liability side of the balance sheet of a commercial bank?
a. demand and other transaction deposits b. loans outstanding c. U.S. government securities d. vault cash
Which of the following conclusions is not supported by the Three-Sector-Model?
a. An increase in a nation's supply of goods and services raises the amount sold per time period and lowers the nation's GDP Price Index. b. An increase in the demand for a nation's currency in the foreign exchange market raises its international value. c. An increase in a nation's real risk-free interest rate increases the willingness and ability of lenders/savers to supply credit to the real loanable funds market, and it decreases the willingness and ability of individuals and companies to borrow/invest. d. An increase in a nation's demand for goods and services within the Classical range usually leads to a strong decrease in the unemployment rate.