If countries have similar factor endowments and productivities, what type of trade are they most likely to have?
What will be an ideal response?
Intraindustry
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In the figure above, what happens if the Fed increases the quantity of money by 8 percent?
A) The interest rate rises to 1.08. B) The value of money rises to 1.08. C) The value of money falls to 0.92 and there is a movement downward along the LRMD. D) The LRMD curve shifts rightward to restore equilibrium. E) The price level falls to 1.08.
If a central bank engages in an unsterilized foreign-exchange intervention with the intention of raising the foreign-exchange value of its currency,
A) the central bank's holdings of international reserves will fall. B) the domestic money supply will rise. C) domestic interest rates will fall. D) it will buy foreign assets.
The U.S. labor movement started with
A) aerospace workers unions. B) industrial unions. C) craft unions. D) depression unions.
How does scarcity affect the range of possible choices that decision makers face?
a. It narrows the choice to a single option. b. It narrows the range of choices. c. It increases the possible methods for solving problems. d. It clarifies the choices by highlighting the best solutions. e. It simplifies the choices and therefore widens the range.