The basic proposition in international trade is that
A) trade is determined by absolute advantage.
B) in the long run, imports are paid for by exports.
C) everyone is made better off by free trade.
D) fair trade is more important than free trade.
Answer: B
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Decrease in the real interest rate will ________ the expenditure curve:
A) decrease. B) increase. C) not change. D) none of the above.
To increase employment, the most effective type of government budget would be a
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