Compared to China, the U.S. rate of savings is _____ and our rate of capital formation is _____.

If both supply and demand simultaneously decrease

A) the market clearing price definitely rises, and the equilibrium quantity definitely falls. B) the market clearing price definitely rises, and the effect on the equilibrium quantity is indeterminate. C) the market clearing price definitely falls, and the effect on the equilibrium quantity is indeterminate. D) the effect on the market clearing price is indeterminate, and the equilibrium quantity definitely falls.

Mutually beneficial trade is impossible when different persons have different preferences about goods and services

a. True b. False Indicate whether the statement is true or false