Bondholders have a "prior claim" over stockholders on a company's earnings or its assets

Every point on an open-economy IS curve represents:

A) combinations of interest rates and the supply of money, which result in equilibrium in the money market. B) combinations of interest rates and levels of production, which result in equilibrium in the goods market. C) combinations of interest rates and levels of production, which result in equilibrium in the money market, the goods market, and the forex market. D) combinations of interest rates and levels of production, which result in equilibrium in the goods market and the forex market.

Internal economies of scale means that

A) firms are experiencing lower average production costs due to a geographical concentration of firms in their industry that make it cheaper and easier to hire highly specialized workers and inputs. B) firms will have lower profits after international trade begins, because costs will be higher than when they just focused on the domestic market. C) consumers will have less choices once trade begins, because firms will be squeezed out of the market. D) expanding the size of the market the firm serves reduces overall per unit costs, since the firm can spread costs over more output.