Explain why a country's gains from trade may not accrue to nationals. Indicate the differential effects on GNP and GDP
What will be an ideal response?
Discussed in the chapter; students should note that some of the value of output is repatriated by multinational corporations.
Economics
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Which of the following is not a reason for the Ricardian equivalence theorem to fail to hold?
A) tax distortions B) people can borrow from the government. C) finite-lived people. D) credit market imperfections.
Economics
When price falls, demand rises.
Answer the following statement true (T) or false (F)
Economics