Table 3-5 Assume That England and Spain Can Switch Between Producing Cheese

question 163

Multiple Choice

Table 3-5
Assume that England and Spain can switch between producing cheese and producing bread at a constant rate.

-Refer to Table 3-5.England should export

• A) cheese and import bread.
• B) bread and import cheese.
• C) both goods and import neither good.
• D) neither good and import both goods.

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Definitions:

Demand Deposits

Bank account balances that can be withdrawn on demand without any notice, such as in checking accounts.

Credit Availability

The ease with which individuals and businesses can obtain loans or credit, often influenced by interest rates and economic policies.

Price Level

A measure of the average prices of goods and services in an economy at a given time.

Federal Deregulation

The process of removing government restrictions and rules in industries to increase efficiency and competition.