Suppose that country A is twice as good at producing widgets as country B. If the currency of B is twice as valuable as the currency of A,
A) the comparative advantage will be canceled out.
B) trade will be an improved outcome for both A and B.
C) the comparative advantage could possible be canceled out depending on how much it costs to produce the widget in country B.
D) none of the above
Correct Answer:
Verified
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