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If the Foreign Import Demand Curve Intersects the Home Country's

Question 138

Multiple Choice

If the foreign import demand curve intersects the home country's export
Supply curve in its horizontal portion, then:


A) the home country will suffer a loss from international trade.
B) the home country will not gain from trade.
C) the home country will gain from trade.
D) the foreign country will not gain from trade.

Correct Answer:

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