Senator Bright, who understands economic principles, is trying to convince workers in her district that trade with other countries is beneficial. Senator Bright should argue that trade can be beneficial
a. only if it allows us to obtain things that we couldn't make for ourselves.
b. because it allows specialization, which increases total output.
c. to us if we can gain and the others involved in the trade lose.
d. in only a limited number of circumstances because others are typically self-interested.
b
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When expansionary monetary policy pushes interest rates to artificially low levels,
a. the demand for and prices of interest-sensitive goods, like housing, will increase. b. people will delay their purchases of interest-sensitive goods, like housing, into the future. c. the demand for interest-sensitive goods, like housing, will increase, but their prices will decline. d. the demand for and prices of interest-sensitive goods, like housing, will decline.
Movements of a currency’s value in terms of the foreign exchange rate will affect the quantity of aggregate _______________ in an economy.
a. demand b. supply c. production d. trade