In the 2-factor, 2 good Heckscher-Ohlin model, trade will ________ the owners of a country's ________ factor and will ________ the good that uses that factor intensively
A) benefit; abundant; export
B) harm; abundant; import
C) benefit; scarce; export
D) benefit; scarce; import
E) harm; scarce; export
A
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If knowing about one outcome does not help to predict another outcome, the outcomes are said to be ________
A) exclusive B) inclusive C) dependent D) independent
As an exchange rate regime, target zones would be classified as
A) splitting the difference between fixed and flexible. B) a flexible exchange rate policy. C) a fixed exchange rate policy. D) a currency basket.
An increase in government purchases or a decrease in taxes, other things being equal, will tend to:
a. increase interest rates and decrease investment. b. increase interest rates and increase investment. c. decrease interest rates and decrease investment. d. decrease interest rates and increase investment.
If gold and the dollar are substitutes, a cut in the Japanese discount rate can be expected to
a. appreciate the dollar and decrease the price of gold. b. depreciate the dollar and increase the price of gold. c. depreciate the dollar and decrease the price of gold. d. appreciate the dollar and increase the price of gold.