A country has an economic boom and can afford to increase imports from a second country. What is likely to happen in the second country?
(1 point)
Responses
a recession
a recession
an economic boom
an economic boom
a depression
a depression
increased taxes
an economic boom
The United States signs a free trade agreement with another country that has dramatically different resources. How would this trade treaty affect the United States?
(1 point)
Responses
Businesses will most likely not offer a variety of products.
Businesses will most likely not offer a variety of products.
Consumers will face higher prices as trade deficits increase.
Consumers will face higher prices as trade deficits increase.
Industries will increasingly focus on using interdependence.
Industries will increasingly focus on using interdependence.
Producers will be put out of business as more interesting products enter the market.