If the world price for a good is above a nation's pre-trade equilibrium price, then the nation
A) will export the good.
B) will import the good.
C) will neither export nor import the good.
D) cannot gain from trade.
E) Both C and D.
A
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In the long run, a firm can choose
A) to operate at any point on only one short-run average total cost curve. B) to operate along any short-run average total cost curves. C) to operate along any short-run average variable cost curves. D) to operate along any point of its short-run marginal cost curves.
Empirical studies indicate that the velocity of money tends to increase when interest rates rise. Which of the following best explains why this is true?
a. When the velocity of money is high, banks will increase their lending interest rates. b. An increase in the growth rate of GDP will cause the velocity of money to increase. c. The higher interest rates increase the cost of holding money balances and, thereby, increase the velocity of money. d. Both the velocity of money and interest rates will rise when the inflation rate falls.