Suppose that there are two factors, capital and land, and that the United States is relatively land endowed while the European Union is relatively capital-endowed. According to the Heckscher-Ohlin model
A) European capitalists should support U.S.-European free trade.
B) European landowners should support U.S.-European free trade.
C) all capitalists in both countries should support free trade.
D) all landowners should support free trade.
E) the U.S. should compensate European countries once trade commences.
A
You might also like to view...
Other things remaining the same, an increase in the price level
A) decreases the quantity of real GDP supplied. B) decreases aggregate supply. C) increases aggregate supply. D) increases the quantity of real GDP supplied. E) neither changes aggregate supply nor changes the quantity of real GDP supplied.
Which of the following reduced the demand stimulus effects of monetary policy during the years following the 2008-2009 recession?
a. Failure of the Fed to provide sufficient reserves to the banking system for the extension of new loans. b. A substantial reduction in the velocity of money resulting from the historically low interest rates. c. The Fed's high interest rate policy that reduced private investment. d. Inability of the Fed to gain approval from Congress to purchase assets other than bonds issued by the federal government.