If a country is a net importer of a good, the price of that good will ________ when the economy goes from closed to open for trade.
A. increase
B. stay the same
C. decrease
D. first increase then decrease
Answer: C
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Which of the following are short-term financial instruments?
A) a repurchase agreement B) a share of Walt Disney Corporation stock C) a Treasury note with a maturity of four years D) a residential mortgage
A usual assumption in real business cycle models is that the economy is populated by a group of identical individuals and the behavior of the group can then be explained in terms of the behavior of one individual, called a(n)
a. maximizing agent. b. representative agent. c. republican agent. d. informative agent. e. democratic agent
Many economists argue that there is imperfect information in the market and that this is a failure of the market mechanism
a. True b. False Indicate whether the statement is true or false
When output rises, unemployment also rises.
a. true b. false