If supply is elastic, the supply curve is relatively ________, and if demand is elastic, the demand curve is relatively ________

For this question, assume that policy makers are pursuing a fixed exchange rate regime. Now suppose that a reduction in stock market wealth causes a decrease in consumption. Which of the following will tend to occur in a fixed exchange rate regime?

A) a reduction in Y B) a reduction in the money supply C) no change in the domestic interest rate D) all of the above

Assume that India has a comparative advantage in producing a computer game. The United States has an absolute advantage in producing the same game. Mutually advantageous trade will have India producing and exporting the game while the United States will specialize in producing something else

a. True b. False