In the HO model, reciprocal demand leads to an equilibrium price ...

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In the HO model, reciprocal demand leads to an equilibrium price by inducing changes in both demand and supply.
 
  Indicate whether the statement is true or false

Question 2

Critics of debt relief make all of the following arguments EXCEPT
 
  A) it would be wasted money since the conditions that caused the debt would be likely to persist.
  B) countries with large foreign debts are poorly administered.
  C) debt relief can quickly fuel a new round of borrowing that simply restores debt to prior levels.
  D) debt relief will encourage other nations to borrow excessively with the hope that their debts may be forgiven in the future.
  E) the cost of debt relief to the most severely indebted countries is too large for the high income countries to afford.

[s.meritte]

Answer to Question 1

TRUE

Answer to Question 2

E

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Thanks for the timely response, appreciate it

[isabelt_18]

Great answer, keep it coming