The gravity equation was tested and found to be very accurate in predicting:
A) world trade in total.
B) trade between various provinces in Canada and American states.
C) trade between the United States and Japan.
D) trade between nations in the European Union.

Question

Quizplus · Accepted Answer

The gravity equation is particularly effective in predicting trade flows between regions or countries that are geographically close and economically integrated, such as Canadian provinces and American states.

The Gravity Equation Was Tested and Found to Be Very