Interindustry trade is not based on comparative advantage since it consists of the export and import of similar countries and mostly between countries that have similar productivity, technology, and factor endowments
Indicate whether the statement is true or false
FALSE
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Who gains surplus when consumers in a market are given a Pigouvian subsidy for a positive externality?
A. Consumers B. Producers C. Others affected by the externality D. Both consumers and producers gain surplus.
The introduction of "rainy-day funds" by states would:
A. decrease the countercyclical nature of current state budgeting procedures. B. increase the procyclical nature of current state budgeting procedures. C. increase the countercyclical nature of current state budgeting procedures. D. decrease the procyclical nature of current state budgeting procedures.
An increase in the government budget deficit will not lead to a current account deficit if domestic investment declines
Indicate whether the statement is true or false
Open market operations directly change the rate of interest at which banks can borrow funds from the Fed
a. True b. False Indicate whether the statement is true or false