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As a Country Moves from Autarky to Trade, the Relative

Question 25

Multiple Choice

As a country moves from autarky to trade, the relative price of the country's export good Will __________ for home consumers, and the relative price of the country's import good __________ for home consumers.


A) fall; will rise
B) fall; also will fall
C) rise; also will rise
D) rise; will fall

Correct Answer:

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