It is argued that if a rich high wage country such as the United States were to expand trade with a relatively poor and low wage country such as Mexico, then U.S. industry would migrate south, and U.S. wages would fall to the level of Mexico's

What do you think about this argument?

The student may think anything. The purpose of the question is to set up a discussion, which will lead to the models in the following chapters.

Economics

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Assume the Fed wants to lower the interest rate. How does the Fed lower the interest rate in the short run?

What will be an ideal response?

Economics

The risk that interest payments will not be made, or that the face value of a bond is not repaid when a bond matures is

A) interest rate risk. B) inflation risk. C) liquidity risk. D) default risk.

Economics