In the Dornbusch-Fischer-Samuelson Graph in Question #24 Above, a Good

question 10

Multiple Choice

In the Dornbusch-Fischer-Samuelson graph in Question #24 above, a good that is located On the horizontal axis to the left of the point directly below the intersection of the A curve With the C curve will be exported by the __________ country, and, for this good,
__________.

• A) home; a₂/a₁ < W₁/W₂ (or a₁/a₂ > W₂/W₁)
• B) home; a₂/a₁ > W₁/W₂ (or a₁/a₂ < W₂/W₁)
• C) foreign; a₂/a₁ < W₁/W₂ (or a₁/a₂ > W₂/W₁)
• D) foreign; a₂/a₁ > W₁/W₂ (or a₁/a₂ < W₂/W₁)

---

Definitions:

Curvilinear Relationship

A relationship between two variables where the change in one variable does not consistently result in a proportional change in the other, often depicted as a curved graph.

Residual Plot

A graph that shows the residuals (the differences between observed and predicted values) on the vertical axis against the predicted values on the horizontal axis, used to evaluate the fit of a model.

Curvilinear Regression

A form of regression analysis in which the relationship between the independent variable and the dependent variable is modeled as an nth degree polynomial.

Specific Risk

A type of risk that affects a very small number of assets, such as a single stock or sector, also known as unsystematic or idiosyncratic risk.