What Do Tests of the Gravity Equation for Trade Between

question 6

Multiple Choice

What do tests of the gravity equation for trade between
Canadian provinces and American states indicate?

• A)Individual state and individual provincial GDPs are negatively related to the amount of trade between individual states and
• Provinces.
• B)Individual state and individual provincial GDPs are positively related to the amount of trade between individual states and
• Provinces.
• C)Individual state and individual provincial GDPs are not at all related to the amount of trade between individual states and
• Provinces.
• D)The gravity equation does not apply to U.S.­Canadian trade.