A country can gain by importing a good that it can make itself if

A. this enables the country to make another good in which it is extremely efficient.
B. it has an absolute disadvantage in the good.
C. this permits the country to establish comparative advantage in the good.
D. All of the above are correct.

Answer: A

Economics

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In a country with floating exchange rates and high capital mobility, an increase in government spending will be

A) less effective than with low capital mobility. B) highly effective. C) not effective at all. D) harmful to the growth of real incomes.

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