With a shift from no trade to free trade, if Country X is relatively labor-abundant and relatively land-scarce and Country Y is relatively labor-scarce and relatively land-abundant, the factor-price equalization theorem predicts that
A. rents will fall in Country Y but will remain unchanged in Country X.
B. wages will increase in Country Y but will remain unchanged in Country X.
C. rents will rise in Country X and fall in Country Y until they equalize.
D. wages will rise in Country X and fall in Country Y until they equalize.
Answer: D
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