Multiple Choice
In two-good,one-period model,when the terms of trade move against you,
A) production of good a increases and consumption of good a decreases.
B) production of good a increases and consumption of good a is ambiguous.
C) production of good b increases and consumption of good a decreases.
D) production of good b decreases and consumption of good a increases.
E) production of good a is ambiguous and consumption of good a increases.
Correct Answer:

Verified
Correct Answer:
Verified
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