Home and foreign produce two goods, flowers and soybeans. home exports the labor intensive flowers and foreign exports the land intensive soybeans. suppose that home provides an export subsidy to its domestic flower producers. the provision of an export subsidy to flower producers by home will cause
a. an improvement in foreign's terms of trade.
b. the relative demand for flowers to increase.
c. the relative supply of flowers to decrease.
d. home's terms of trade to improve.
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Home and foreign produce two goods, flowers and soybeans. home exports the labor intensive flowers a...
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