An increase in taxes shifts the

Alpha can produce either 18 tons of oranges or 9 tons of apples in a year, while Omega can produce either 16 tons of oranges or 4 tons of apples. Which of the following statements is true? a. Alpha should export to Omega, but Omega should not export to Alpha

b. Since Alpha has an absolute advantage in both goods, no mutual gains from trade are possible. c. If Alpha specializes in growing apples and Omega specializes in growing oranges, they could both gain by specialization and trade. d. If Alpha specializes in growing oranges and Omega specializes in growing apples, they could both gain by specialization and trade.

Discuss the changes that have and will in the future affect the usefulness of the M1 and M2 money supply figures as indicators of monetary policy