Formation of trade blocs can be considered beneficial because it
A. diverts world trade from low-cost producers to high-cost producers by encouraging too much trade within blocs.
B. causes international friction when certain countries are let in the bloc and others are left out.
C. encourages purchases from higher-cost producers.
D. encourages increased total trade by each member country.
Answer: D
Economics
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According to the quantity theory of money, if an economy produces 5,000 units of output, its money supply equals $40,000 and the velocity of money equals one, then the price level will equal:
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Economics