If two countries with diminishing returns and different marginal rates of substitution between two products were to engage in trade, then
A) the marginal rates of substitution of both would become equal.
B) the shapes of their respective production possibility frontiers would change.
C) the larger of the two countries would dominate their trade.
D) the country with relatively elastic supplies would export more.
E) the opportunity costs for the smaller country would increase.
A
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Increasing savings and ________ go hand in hand because they both ________
A) decreasing expenditures; are the result of an increase in nominal interest rates on the loanable funds market B) decreasing expenditures; are the result of an increase in real interest rates on the loanable funds market C) increasing expenditures; are the result of an increase in nominal interest rates on the loanable funds market D) increasing expenditures; are the result of an increase in real interest rates on the loanable funds market E) None of the above answers is correct.
Explain what is meant by perfect price discrimination
What will be an ideal response?