According to the Rybczynski theorem, at constant world prices, if ...

[amal]

According to the Rybczynski theorem, at constant world prices, if a country experiences a gain in its capital stock it will produce
 
  A) more of the capital intensive good and less of the labor intensive good.
  B) more of both goods.
  C) less of the capital intensive good and more of the labor intensive good.
  D) less of both goods.

Question 2

A sudden stop will be easier to navigate if the country borrows internationally in foreign currencies and lend locally in its domestic currency.
 
  Indicate whether the statement is true or false

[amy.lauersdorf90]

Answer to Question 1

A

Answer to Question 2

FALSE

[amal]

Thank you

[amy.lauersdorf90]

Happy to help you