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If Px/Py Exceeds the Equilibrium Relative Px/Py with Trade

Question 11

Multiple Choice

If Px/Py exceeds the equilibrium relative Px/Py with trade


A) the nation exporting commodity X will want to export more of X than at equilibrium
B) the nation importing commodity X will want to import less of X than at equilibrium
C) Px/Py will fall toward the equilibrium Px/Py
D) all of the above

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