In a Two-Nation Model, the Equilibrium World Price Will Occur

question 278

Multiple Choice

In a two-nation model, the equilibrium world price will occur where

• A) one nation's export supply curve intersects the other nation's import demand curve.
• B) exports are exactly twice the level of imports.
• C) both nations' export supply curves are horizontal.
• D) both nations' import demand curves are vertical.

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Definitions:

Richard Lazarus

A psychologist known for his research on stress and emotion, particularly for developing the appraisal theory of stress.

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