To increase output, policymakers can _____ the money supply, _____ taxes, and/or _____ government purchases

Exports of U.S. goods create a ________ U.S. dollars and create a ________ foreign currencies

A) demand for; demand for. B) supply of; supply of C) demand for; supply of D) supply of; demand for

Trade diversion reduces worldwide efficiency, because:

a. production is diverted to the country with the comparative advantage. b. production is diverted from the country with the comparative advantage. c. unnecessary trade restrictions are created in the economies. d. consumption is diverted to the country having inadequate demand. e. the cost of transshipment of the goods increases thus raising their prices in the world market.