The Concept of Reciprocal Demand Suggests That

Multiple Choice

The concept of reciprocal demand suggests that:

A) the country with the greater demand for the other country's product will gain more from trade.
B) the country with the greater demand for the other country's product will gain less from trade.
C) that the demand for another country's product does not influence the terms of trade.
D) that the terms of trade will dictate the amount of debt the country will acquire to purchase the product.
E) Demand is more important than supply.