Refer to the information provided in Figure 33.1 below to answer the question(s) that follow.
Figure 33.1Refer to Figure 33.1. Which of the following statements is true?
A. Trade will benefit both countries because the United States has a comparative advantage in the production of soybeans and Canada has a comparative advantage in the production of alfalfa.
B. Trade will benefit neither country because the United States has an absolute advantage in the production of both soybeans and alfalfa, but Canada has a comparative advantage in the production of both soybeans and alfalfa.
C. Trade will benefit both countries because the United States has a comparative advantage in the production of alfalfa and Canada has a comparative advantage in the production of soybeans.
D. Only Canada can benefit from trade because the United States has an absolute advantage in the production of both soybeans and alfalfa.
Answer: C
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The Fed makes an open market operation purchase of $200,000. The currency drain ratio is 33.33 percent and the desired reserve ratio is 10 percent. By how much does the quantity of money increase?
A) $800,000 B) $333,333 C) $2,000,000 D) $615,416 E) $465,116
The short-run Phillips curve is based on the assumption of: a. a direct relationship between the inflation rate and unemployment. b. an inverse relationship between the inflation rate and unemployment. c. no relationship between the inflation rate and unemployment
d. a permanent trade-off between the inflation rate and unemployment.