Author Question: International trade can have important effects on the distribution of income because A) some ... (Read 115 times)

Caiter2013 · **on:** Jun 30, 2018

International trade can have important effects on the distribution of income because

A) some resources are immobile in the short run.
B) of government corruption.
C) the more powerful country dictates the terms of trade.
D) rich countries take advantage of poor countries.
E) different countries use different currencies.

Question 2

The main reason(s) why governments sometimes chose to devalue their currencies is (are)

A) devaluation makes domestic goods more expensive in relation to foreign goods.
B) devaluation makes domestic services more expensive in relation to foreign services.
C) devaluation increases foreign reserves held by the central bank.
D) devaluation improves the current account and increases foreign reserves held by the central bank.
E) devaluation hurts foreign currencies.