An argument in favor of multilateral trade liberalization (multilateralism) over preferential trade agreements (regionalism) is that multilateralism results in less trade diversion

An expansionary monetary policy shifts the LM curve to the ________, reducing ________, everything else held constant

A) left; output and increasing interest rates B) left; both real output and interest rates C) right; both interest rates and real output D) right; interest rates and increasing real output

In game theory, if two rivals in an oligopoly can avoid a large loss by cutting price from $40 to $35,

a. neither will cut its price b. one will charge $40 and the other will charge $35 c. their actions will depend on their respective strategies d. each will cut price but not all the way to $35 e. they will collude to do what's best for both of them