If the residents of a country specialize in a good in which they have a comparative advantage and trade with residents in another nation, the residents in the first country
A) can consume more than they could without trade.
B) can produce more than they could without trade.
C) will have a lower standard of living.
D) will be exploited by the second nation.
A
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The consumption function will shift with
A) a decrease in real disposable income. B) a change in saving. C) a change in household wealth. D) an increase in real disposable income.
In the money market, a decrease in money demand will:
A) result in a rightward shift in the money demand curve increasing interest rates. B) result in a rightward shift in the money demand curve decreasing interest rates. C) result in a leftward shift in the money demand curve increasing interest rates. D) result in a leftward shift in the money demand curve decreasing interest rates.