Implementing a regional free-trade agreement may have an effect in which, due to reduced tariffs, a nation begins to import a product from another member country that it had previously imported from outside the new trade region. This effect is called:

A dominant strategy is one that

A) yields a position of the winner so long as the other participants act as planned. B) every participant in the game will follow. C) turns a negative-sum game into a positive-sum game. D) always yields the highest benefit regardless of what the other players do.

The MPC and MPS measure changes in consumption expenditure and saving that result from changes in

A. expected inflation B. disposable income C. expected future income D. government expenditures on goods and services.