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Class Exercise the Gravity Model Use this information to answer the following questions: The GDPs of countries A, B, and C are $1,000, $2,000, and S3,000, respectively. There are 1,000 miles between country A and B and 2000 miles between countries B and C. Assume that their markets are monopolistically competitive. Does the gravity equation predict that there wil be more trade between A and B or between B and C? (Use the Gravity model formula rade Tx nce GDP XGDP distance
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