If the World Price for a Good Is Above a Nation's

question 60

Multiple Choice

If the world price for a good is above a nation's pre-trade equilibrium price,then the nation

• A)will export the good.
• B)will import the good.
• C)will neither export nor import the good.
• D)cannot gain from trade.
• E)Both C and D.

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Definitions:

Moody's Baa

Moody's Baa rating denotes bonds that are considered medium-grade, subject to moderate credit risk, and as such, investors should investigate further.

S&P's BBB

A credit rating by Standard & Poor's that indicates an investment grade with moderate credit risk.

Bond Ratings

A system used to assess the credit quality and risk level of bonds, typically assigned by rating agencies.

Sinking Fund Provisions

A requirement for a debtor to set aside funds at regular intervals to repay a bond or loan before its maturity in order to ensure the safety of the investment for creditors.