Solved

In the Following Offer Curve Diagram

Question 7

Multiple Choice

In the following offer curve diagram,
In the following offer curve diagram,   If, starting from the initial equilibrium point E, countries A and B both increase their Demand for computers, then country A's terms of trade will __________ and the volume of A's exports will __________. A)  improve; fall B)  improve; rise, fall, or stay the same (cannot be determined without more Information)  C)  deteriorate; rise D)  improve, deteriorate, or stay the same (cannot be determined without more Information) ; rise
If, starting from the initial equilibrium point E, countries A and B both increase their Demand for computers, then country A's terms of trade will __________ and the volume of A's exports will __________.


A) improve; fall
B) improve; rise, fall, or stay the same (cannot be determined without more Information)
C) deteriorate; rise
D) improve, deteriorate, or stay the same (cannot be determined without more Information) ; rise

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions