The two types of trade, intertemporal and pure asset swap ...

[Metfan725]

The two types of trade, intertemporal and pure asset swap ________ perfect substitutes, because ________.
 
  A) are; they both offer considerable payoff and are equal in the long run
  B) are; they both involve the smoothing out of now and future consumption
  C) are not; asset swapping is immediate and involves only assets, while intertemporal trade takes two time periods and involves both assets and goods/services
  D) could possibly be; different economic states occur at different points in time
  E) are not; asset swapping never relates to intertemporal trade

Question 2

Free trade is better than autarky for a small country.
 
  Indicate whether the statement is true or false

[Ahernandez18]

Answer to Question 1

D

Answer to Question 2

TRUE

[Metfan725]

TYSM

[kusterl]

Excellent