What effect does an expansionary monetary policy in the U.S. have on the foreign trade sector?
A) The lower value of the dollar will decrease exports and increase imports.
B) The lower value of the dollar will decrease imports and increase exports.
C) The higher value of the dollar will decrease exports and increase imports.
D) The higher value of the dollar will decrease imports and increase exports.
B
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Adverse selection can only occur when there is asymmetric information?.
Indicate whether the statement is true or false.
A person has a comparative advantage in producing a good if that person:
a. can produce the good at a lower absolute cost than anyone else. b. can produce the good at a lower opportunity cost than anyone else. c. can do a better job than anyone else. d. spends more money in out-of-pocket expenses than anyone else. e. can produce the good at a higher opportunity cost than anyone else.