Both the classical and the HO model predict that the pattern of trade is determined largely by international differences in factor endowments.
Indicate whether the statement is true or false
Question 2
One of the problems with excessive debt is that
A) it worsens the central government's budget position by adding large debt service payments to other budget items.
B) it reduces the quantity of resources available to invest in economic development.
C) if debt service is substantial, schools, health clinics, roads, ports, other infrastructure, and social needs are less likely to be addressed.
D) it can intensify and spread a crisis.
E) All of the above.
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