Refer to the table above. Once trade begins, a possible international price (i.e. terms of trade) for textiles in terms of grapes is

If a the government of Country Z is running a budget deficit and net exports are zero, then

A) investment is greater than saving. B) investment and saving are equal. C) saving is greater than investment. D) none of the above.

If the cross-price elasticity of demand for two goods is -4.5, then

a. the two goods are substitutes. b. the two goods are complements. c. one of the goods is normal while the other good is inferior. d. one of the goods is a luxury while the other good is a necessity.