Refer to Figure 2-8. If the two countries have the same amount of resources and the same technological knowledge, which country has an absolute advantage in the production of both pineapples and coconuts?

Other things the same, continued losses in technological ability and continued decreases in the money supply would unambiguously lead to

a) neither declining prices nor declining real GDP. b) declining real GDP only. c) declining prices only. d) declining prices and declining real GDP.

A reserve currency is a currency that is:

a. used exclusively to settle domestic debts. b. specifically designed for use by commercial banks to settle accounts. c. held only by bureaucrats. d. used to settle international debts by private corporations. e. held by governments to facilitate foreign exchange market interventions.