Refer to the table above. If you are told that Country B is very ...

[notis]

Refer to the table above. If you are told that Country B is very much richer than Country A, then the correct answer is
 
  A) country B will export good S.
  B) country A will export good S.
  C) both countries will export good S.
  D) trade will not occur between these two countries.
  E) both countries will import good S.

Question 2

A constant differential between the interest rates of two countries over different terms to maturity implies that future changes in the exchange rate are expected to occur at a(n) ________ rate.
 
  A) constant
  B) increasing
  C) decreasing
  D) None of the above

[tsternbergh47]

Answer to Question 1

A

Answer to Question 2

A

[notis]

Gracias!

[peter]

Excellent