The potential positive feedback that government spending may have on investment is known as the _____. The potential negative effect that government spending may have on investment is known as the _____ effect

An expansionary monetary policy results in lower interest rates, which in turn

A) reduces the international price of the dollar and increases net exports. B) increases the foreign demand for U.S. financial instruments, lowering the international price of the dollar and decreasing net exports. C) reduces the foreign demand for U.S. financial instruments and reduce net exports. D) increases foreign demand for U.S. financial instruments, raising the international price of the dollar and reducing net exports.

For a nation to have ________ in producing a good it must have a lower opportunity cost of producing that good than the other country

A) a comparative advantage B) an autarky advantage C) an absolute advantage D) both a comparative advantage and an absolute advantage