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If the World Terms of Trade Equal Those of Country

Question 61

Multiple Choice

If the world terms of trade equal those of country F,then


A) country H but not country F will gain from trade.
B) country H and country F will both gain from trade.
C) neither country H nor F will gain from trade.
D) only the country whose government subsidizes its exports will gain.
E) country F but not country H will gain from trade.

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