Author Question: If the world terms of trade for a country are somewhere between the domestic cost ratio of H and ... (Read 62 times)

D2AR0N · **on:** Jun 30, 2018

If the world terms of trade for a country are somewhere between the domestic cost ratio of H and that of F, then

A) country H but not country F will gain from trade.
B) country H and country F will both gain from trade.
C) neither country H nor F will gain from trade.
D) only the country whose government subsidizes its exports will gain.
E) country F but not country H will gain from trade.

Question 2

Security purchases in the United States by foreigners is

A) a credit item in the current account.
B) a debit item in the capital account.
C) a credit item in the capital account.
D) a debit item in the current account.