Which of the Following Statements Describes Reasons Why Freetrade Is

question 18

Multiple Choice

Which of the following statements describes reasons why freetrade is beneficial for the United States?

• A)Free trade increases consumer surplus for imported goods that are cheaper than U.S.goods.
• B)Free trade directs U.S.resources to those goods and services for which the United States has a comparative
• Advantage.
• C)Through specialization the U.S.and its trading partners can use the same overall amount of resources to produce and
• Consume a larger amount of goods.
• D)All of these statements are correct.

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Definitions:

Depositors

Individuals or entities that hold accounts with banks or financial institutions, entrusting their funds for safekeeping and earning interest.

Money Market Mutual Fund Account

An investment account that pools money from individuals to invest in short-term, high-quality securities, often offering liquidity and low risk.

Interest-Earning Assets

Financial assets that generate income over time through the payment of interest, such as bonds, savings accounts, and certificates of deposit.

FDIC

The Federal Deposit Insurance Corporation (FDIC) is a United States government agency that provides deposit insurance to depositors in American commercial banks and savings institutions.