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What Do Tests of the Gravity Equation for Trade Between

Question 6

Multiple Choice

What do tests of the gravity equation for trade between
Canadian provinces and American states indicate?


A) Individual state and individual provincial GDPs are negatively related to the amount of trade between individual states and
Provinces.
B) Individual state and individual provincial GDPs are positively related to the amount of trade between individual states and
Provinces.
C) Individual state and individual provincial GDPs are not at all related to the amount of trade between individual states and
Provinces.
D) The gravity equation does not apply to U.S.­Canadian trade.

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