According to the Stolper-Samuelson theorem, an increase in the price of a country's imports will:
A) reduce the returns to all factors of production within the country.
B) raise the returns to all factors of production within the country.
C) reduce the returns to the factor of production used relatively intensively in the import-competing industry.
D) raise the returns to the factor of production used intensively in the import-competing industry.
Correct Answer:
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