According to Milton Friedman, the short-run trade-off between unemployment and inflation comes from unanticipated inflation

A country will be able to consume a combination of goods that is not attainable solely from domestic production if

A) the world terms of trade differ from its domestic relative costs. B) the country specializes in one product. C) the country avoids international trade. D) the world terms of trade equal the domestic relative costs. E) the country's domestic production value equals world relative value.

Holding a group of assets reduces risk relative to holding a single asset as long as the assets

A) are dependent on each other. B) are positively correlated. C) are uncorrelated. D) do not have precisely the same pattern of returns.