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Q. In a floating exchange rate system:

Q. If interest rates on the euro are consistently below U.S. interest rates, then for the international Fisher effect (IFE) to hold:

Q. What is the effect of an increase in taxes under fixed exchange rates and perfect asset substitutability in the short run?

Q. In international-trade equilibrium in the Heckscher-Ohlin model,

Q. If a nation gains from trade its consumption point is

Q. Country A has 100 units of labor and Country B has 200 units of labor. Both countries produce computers and Web pages. The unit labor requirements are given in the table below: Computers Web pages Country A 50 1 Country B 100 1 Assume free trade exists and that the relative price is such that both countries specialize completely in the industry in which they have a comparative advantage (neither country produces both goods). The supply of computers relative to Web pages will be:

Q. Which of the following is NOT an assumption in the Ricardian model?

Q. One way in which the Heckscher-Ohlin model differs from the Ricardo model of comparative advantage is by assuming that __________ is (are) identical in all countries.

Q. __________ are profits that accrue to whomever has the right to import the good that is restricted by the quota.

Q. What are "Eurobanks"?