Refer to Figure 14.1. Other things equal, which of the following will cause a movement from point Y to point X?

A) an increase in the real interest rate
B) a decrease in disposable income
C) a decrease in expected profits for firms
D) an increase in net exports

D

Economics

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Which of the following CANNOT be a source of comparative advantage?

A) Climate B) Resource stock available C) Education of workforce D) Domestic prices of goods and services

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If Frito Lay, an American snack company, opens a new manufacturing facility in Mexico and produces snacks which are distributed in South America, then Mexico's GDP ________ and U.S. GDP ________

A) increases; does not change B) does not change; increases C) increases; decreases D) increases; increases

Economics