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Suppose That Home Is a Capital­abundant Country.When

Question 74

Multiple Choice

Suppose that Home is a capital­abundant country.When
Home trades with Foreign, a labor­abundant country, the
HO model predicts that the price of:


A) the labor­intensive good will rise in Home.
B) the labor­intensive good will rise in Foreign.
C) the capital­intensive good will rise in Foreign.
D) the capital­intensive good will fall in Home.

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