Which of the Statements About the Gains from International Trade

question 95

Multiple Choice

Which of the statements about the gains from international trade is correct?

• A) Everyone loses from international trade.
• B) Some people gain from international trade and some lose, though overall the gains exceed the losses.
• C) Some people gain from international trade and some lose; overall the gains exceed the losses.
• D) Everyone gains from international trade.

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Definitions:

Interest Rate Risk

The risk that an investment's value will change due to a change in the absolute level of interest rates, in the spread between two rates, or in any other interest rate measure.

Duration Of Assets

The sensitivity of an asset's price to interest rate changes, expressed in years.

Duration Of Liabilities

A measure of the sensitivity of the price (the value of principal) of a fixed-income investment to a change in interest rates, expressed in years.

Yield To Maturity

The total return expected on a bond if it is held until its maturity date.