When macroeconomic policies are not coordinated,
A) macroeconomic policies will not be effective.
B) expansionary policies in one country are likely to increase global imbalances.
C) worldwide recessions are likely.
D) low-income countries cannot grow.
Question 2
Empirical tests of the theory of comparative advantage have provided
A) strong support for both the Ricardian and Heckscher-Ohlin models.
B) mixed support for the Ricardian model and strong support for the Heckscher-Ohlin model.
C) strong support for the Ricardian model and mixed support for the Heckscher-Ohlin model.
D) mixed support for both Ricardian and Heckscher-Ohlin models.
E) no support for either the Ricardian or the Heckscher-Ohlin models.
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