Hymans and Stafford Achieve Their Surprising Result That a Country

Multiple Choice

Hymans and Stafford achieve their surprising result that a country that trades can suffer welfare losses because, in their two-country model, they assume that:

A) the poor country discovers oil.
B) the rich country increases the size of its government too much.
C) the rich country stops investing altogether while the poor country increases investment.
D) the poor country steals technology from the rich country.