The greater the substitutability between Northwest timber and Southeast timber, the ________ is the cross elasticity of demand between timber from the two regions and the ________ is the elasticity of demand for Northwest timber

Refer to the figure above. Which of the following explains the impact on the domestic buyers and sellers when the country opens to free trade?

A) Both the sellers and the buyers are made worse off. B) Both the sellers and the buyers gain. C) The domestic firms lose but the buyers gain. D) The domestic firms gain but the buyers lose.

According to the Monetarists an increase in investment spending initially __________ unemployment so that the price level __________. The resulting __________ in the real money supply __________ spending

A) increases; rises; increase; decreases B) increases; falls; increase; increases C) decreases; falls; decrease; increases D) decreases; rises; decrease; decreases