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The Invocation of Beggar- Thy- Neighbor Arguments with Respect to Industrial

Question 7

Multiple Choice

The invocation of beggar- thy- neighbor arguments with respect to industrial policies


A) applies only to rich countries most of whose trade partners are very poor countries.
B) strengthens the argument for subsidies.
C) does not apply to rich countries who can influence relative world prices.
D) makes sense if the international Keynesian multipliers exceed unity.
E) weakens the argument for subsidies.

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