Q. Trade In differentiated products refers to
✅ Correct Answer: (A)
intra industry trade
International Economics MCQs and Notes
Q. When capital mobility is perfect, interest rate differentials will tend to be offset by ________
✅ Correct Answer: (D)
expected exchange rate changes
Q. Perfect international capital mobility suggests that international funds will be responsive to _____________ differentials
✅ Correct Answer: (B)
interest rate
Q. Within the circular flow of income, an increase in domestic income will tend to increase
✅ Correct Answer: (D)
imports
Q. A rise in the real exchange rate will ____________ the competitiveness of the domestic economy
✅ Correct Answer: (B)
reduce
Q. Starting from a position of internal and external balance, a reduction in aggregate demand will cause a current account _____________
✅ Correct Answer: (B)
surplus