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If, as Is Suggested by Some Recent Research, a Country's

Question 21

Multiple Choice

If, as is suggested by some recent research, a country's consumers have a preference forHome goods over foreign goods that is not accounted for in the analysis, then this__________ will lead to a prediction of trade volume that is __________ than theActual amount of trade volume of the country.


A) "foreign bias"; larger
B) "foreign bias"; smaller
C) "home bias"; larger
D) "home bias"; smaller

Correct Answer:

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