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The Gravity Equation Uses a Calculation to Predict the Level

Question 63

Multiple Choice

The gravity equation uses a calculation to predict the level of
Bilateral trade based directly on ____ and inversely on _____.


A) wages; technology
B) size of the countries' GDP; the geographic distance between the countries
C) the percent of the countries' GDP in manufacturing; their level of tariffs
D) the growth rates of the countries' GDP; their openness to trade

Correct Answer:

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