Under a fixed exchange rate regime, suppose there is an increase in housing wealth that causes an increase in consumption. This wealth-induced increase in consumption will cause

Specialization occurs when each individual, firm, or country:

A) produces only a few specific goods and relies on trade for the other goods and services it needs. B) is self-sufficient and produces all the goods and services it needs, without relying on imports. C) produces only those goods for which it has a higher opportunity cost of producing than the opportunity cost in other nations. D) produces only those goods which are in demand in the global market and allow for high rates of profitability.

Which of the following statements regarding generic drugs and name-brand pharmaceuticals is false?

A) Pharmaceutical companies have spent large amounts of time and money in their attempts to reduce competition from generic drugs. B) Generic drugs have the same chemical content as the corresponding branded drug. C) On average, a generic drug can reduce U.S. sales of a branded drug by as much as 50 percent in the first six months. D) Pharmaceutical companies need only to renew the patents they have on certain drugs to protect them from competition by generic drugs.