Changes in the national incomes of our trading partners would directly impact our:

A prediction of the Ricardo-Barro effect is

A) a larger decrease in the real interest rate when the government runs a budget surplus. B) no effect on the real interest rate when the government runs a budget deficit. C) a larger decrease in investment when the government runs a budget deficit. D) a larger increase in the real interest rate when the government runs a budget deficit. E) a larger decrease in investment when the government runs a budget surplus.

Why might a nation that has an absolute advantage in the production of a good or a service still not be able to find a trading partner?

What will be an ideal response?