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If Trade Opens Up Between the Two Formerly Autarkic Countries

Question 2

Multiple Choice

If trade opens up between the two formerly autarkic countries, Australia and Belgium, then


A) the real income of both countries will increase.
B) the real income of neither country will increase.
C) the real income of Australia but not of Belgium will increase.
D) the real income of Australia and of Belgium will increase.
E) the real income of both countries may increase.

Correct Answer:

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