When one applies the Heckscher-Ohlin model of trade to the issue of trade-related income redistributions, one must conclude that North South trade, such as U.S.-Mexico trade
A) must help low skill workers on both sides of the border.
B) is likely to hurt high-skilled workers in the U.S.
C) is likely to hurt low-skilled workers in the U.S.
D) is likely to hurt low-skilled workers in Mexico.
E) is likely to help highly skilled workers in Mexico.
C
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Comparing the simple Keynesian model with the IS-LM model, in the IS-LM model
a. the government spending multiplier is larger. b. the balanced budget multiplier is larger. c. the tax multiplier is smaller. d. there is no difference between any of the multipliers.Figure 7-2
Which of the following is NOT an inference of the rational expectations hypothesis?
A) Government policy actions have no real effects in the short run unless the actions are unanticipated. B) Government policy actions have no real effects in the long run. C) Government policy actions that are anticipated have no real effects in the short run. D) Government policy actions that are unanticipated have no monetary effects in the short run.