Relative to a No-Trade Situation, If the United States Imported

question 156

Multiple Choice

Relative to a no-trade situation, if the United States imported jeans, the U.S. domestic price of jeans would

• A) rise, but domestic output would fall.
• B) decline, but domestic output would rise.
• C) decline as would domestic output.
• D) rise as would domestic output.

---

Definitions:

Amortized

The process of spreading payments over multiple periods, typically in context of a loan or mortgage, which includes both interest and principal components.

Compounded Semi-annually

Refers to the process where interest is calculated and added to the principal balance of an investment or loan twice a year.

Amortized

The process of spreading out a loan into a series of fixed payments over time.

Amortization

The method of distributing a loan across a sequence of consistent installments over a period.