If the World Supply Curve Is S_W0, and the Country

question 17

Multiple Choice

If the world supply curve is S_W0, and the country discovers a significant natural resource that can be exported, the world supply curve will shift:

• A) down and the trade balance will become a deficit.
• B) down and the trade balance will become a surplus.
• C) up and the trade balance will become a deficit.
• D) up and the trade balance will become a surplus.

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