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When Free Trade Prevails,the

Question 22

Multiple Choice

When free trade prevails,the


A) domestic prices of imported items rise and of exported items decline.
B) domestic prices of both imported and exported items rise.
C) domestic prices of exported items rise in the exporting country and decline in the importing country.
D) domestic prices of imported and exported items remain the same.
E) laws of supply and demand are replaced by the law of comparative advantage.

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