As a person's wage rate increases, the substitution effect motivates an increase in work and the income effect motivates a decrease in work

Assume that transportation costs are especially high for Widgets in the two-country, two-product Ricardian model, and Country A enjoys a comparative advantage in Widgets, then

A) country B must also enjoy a comparative advantage in Widgets. B) country B may end up exporting Widgets. C) country A may switch to having a comparative advantage in the other good. D) country A will still export Widgets. E) Trade may be impossible between the two countries.

An investment bank is a financial institution that finances federal budget deficits at very low interest rates

a. True b. False Indicate whether the statement is true or false