The world has had a freely floating exchange rate system since

The collapse of the subprime mortgage market

A) did not affect the corporate bond market. B) increased the perceived riskiness of Treasury securities. C) reduced the Baa-Aaa spread. D) increased the Baa-Aaa spread.

If Freedonia changes its laws to allow international trade in software and the world price is lower than its domestic price, then it must be the case that

a. both consumer surplus and producer surplus increase. b. consumer surplus increases and producer surplus decreases. c. consumer surplus decreases and producer surplus increases. d. both consumer surplus and producer surplus decrease.