Everything else held constant, when the current value of the domestic currency increases, the ________ domestic assets ________

The assumption of diminishing returns in the Heckscher-Ohlin model means that, unlike in the Ricardian model, it is likely that

A) countries will not be fully specialized in one product. B) countries will benefit from free international trade. C) countries will consume outside their production possibility frontier. D) comparative advantage will not determine the direction of trade. E) global production will decrease under trade.

As the marginal propensity to consume (MPC) increases, the spending multiplier:

a. increases. b. decreases. c. remains constant. d. becomes indefinable.