• Card 114 / 145: If the world price of cotton is less than the price that would occur domestically without trade, then a country will
    A) import cotton.
    B) export cotton.
    C) decrease its demand for cotton, and increase its demand for cotton substitutes.
    D) increase its demand for cotton, and decrease its demand for cotton substitutes.

    Answer:
    A) import cotton.

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Macroeconomics MCQ

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