If trade is consistent with the Heckscher-Ohlin (H-O) theory, then growth in a country's scarce factor of production will lead to

A. balanced growth.
B. a deterioration in the country's terms of trade.
C. a decreased willingness to trade.
D. an increased willingness to trade.

Answer: C

Economics

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Which of the following is correct? When actual leakages exceeds expected injections, then:

a. Inventories rise, unemployment tends to rise, and prices tend to fall. b. Inventories rise, unemployment tends to fall, and prices tend to rise. c. Inventories fall, unemployment tends to rise, and prices tend to rise. d. It is impossible for these two to be unequal. e. You are mixing apples and oranges. These two macroeconomic variables should not be compared.

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