Question
In the large country case, which of the following is correct with respect to domestic monetary or absolute prices of the products? A. The exports
In the large country case, which of the following is correct with respect to domestic monetary or absolute prices of the products?
A. The exports of the large county to the "small" country will cause a large increase in the domestic price of the product in the large country.
B. The exports of the "small" county to the large country will cause a large decrease in the domestic price of the product in the large country.
C. The exports of the large county to the "small" country will cause a large decrease in the domestic price of the product in the small country.
D. The imports of the large county from the "small" country will cause a large decrease in the domestic price of the product in the small country.
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