When a Country Allows Trade and Becomes an Importer of a Good

question 119

Multiple Choice

When a country allows trade and becomes an importer of a good,

• A)domestic producers become better off,and domestic consumers become worse off.
• B)domestic producers become worse off,and domestic consumers become better off.
• C)domestic consumers become better off,but the effect on the well-being of domestic producers is ambiguous.
• D)domestic producers become worse off,but the effect on the well-being of domestic consumers is ambiguous.

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Definitions:

Yield To Maturity

The total return anticipated on a bond if the bond is held until it matures, considering both interest payments and the principal appreciation or depreciation.

Par Value

The face value of a bond or stock, as stated by the issuing company. This is the nominal value and may differ from the market value.

Coupon Bond

A bond that pays the holder a fixed interest rate (coupon) over the bond's lifetime and repays the principal at maturity.

Current Yield

A measure of the annual income (interest or dividends) generated by an investment, expressed as a percentage of the current market price.