The quantity of money people want to hold increases if
A) the price level falls.
B) the nominal interest rate rises.
C) real GDP increases.
D) All of the above answers are correct.
Question 2
Belize, a country in Central America, has a small coffee industry. Suppose Belize does not have free trade but it has comparative advantage in coffee production. If Belize allowed international trade, what would be the gains from trade?
A) Belize coffee producers would gain from trade.
B) Belize coffee consumers would gain from trade.
C) Belize would gain tariff revenue from trade.
D) All of these answers are gains from trade.
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