In two-good,one-period model,when the terms of trade move against you,
A) production of good a increases and consumption of good a decreases.
B) production of good a increases and consumption of good a is ambiguous.
C) production of good b increases and consumption of good a decreases.
D) production of good b decreases and consumption of good a increases.
E) production of good a is ambiguous and consumption of good a increases.
Correct Answer:
Verified
Q23: The terms of trade move against a
Q24: In Canada during the period 1961-2011,
A) interest
Q25: In a two-good,one-period model,when the terms of
Q26: In a two-good,two-period model,holding everything else constant,an
Q27: In a two-good,one-period model,when the terms of
Q29: In a two-good,two-period model,as long as wealth
Q30: Ricardian equivalence suggests that government budget deficits
Q31: When the terms of trade increase,the
A) substitution
Q32: In a two-good,one-period model,an increase in the
Q33: In a two-good,one-period model,when the terms of
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents