Refer to the table above. If the world price of trousers is $5 per pair, then which of the following statements is true?
A) All the four countries will import trousers.
B) All the four countries will export trousers.
C) Country A and Country D will export trousers, whereas Country B and Country C will import trousers.
D) Country B and Country C will export trousers, whereas Country A and Country D will import trousers.
A
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An increase in the currency drain ratio
A) decreases the monetary base. B) increases the quantity of money. C) increases bank reserves. D) does not change the amount of the monetary base. E) does not change the quantity of money.
(Consider This) During and immediately following the severe recession of 2007-2009, on the consolidated balance sheet of the 12 Federal Reserve Banks:
A. commercial bank reserves grew significantly because the Fed increased the required reserve ratio. B. liabilities fell significantly as commercial banks drained reserve accounts to meet their own deposit liabilities. C. assets fell significantly as a result of heavy withdrawals from commercial banks. D. assets grew significantly from Fed purchases of securities from financial institutions.