Taxes, savings, and imports tend to magnify the effect of any ...

[Haya94]

Taxes, savings, and imports tend to magnify the effect of any spending change in the economy; that is, if investment spending initially increases, then spending will grow even more as taxes, savings, and imports increase, so the economic growth will accelerate.
 
  Indicate whether the statement is true or false

Question 2

In our simple trade model, having a comparative advantage in a product implies that a country will specialize completely in the product
 
  A) with the highest opportunity cost.
  B) with the lowest opportunity cost.
  C) where total output is lower per worker-hour.
  D) where total output is greater per worker-hour.

[bhavsar]

Answer to Question 1

FALSE

Answer to Question 2

B

[Haya94]

Correct answers!

[bhavsar]

Great! Please up vote