Consider the Following Statements

Multiple Choice

Consider the following statements:
I. Relative to a no-trade situation, if the United States exported wheat, the U.S. domestic wheat price would rise and domestic production of wheat would expand.
II. Relative to a no-trade situation, international trade causes the prices of all goods to rise.

A) I is true; II is false.
B) I is false; II is true.
C) Both I and II are true.
D) Both I and II are false.