The invocation of beggar-thy-neighbor arguments with respect to industrial policies
A) strengthens the argument for subsidies.
B) makes sense if the international Keynesian multipliers exceed unity.
C) applies only to rich countries most of whose trade partners are very poor countries.
D) weakens the argument for subsidies.
E) does not apply to rich countries who can influence relative world prices.
D
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People ________ their labor supply in response to a temporary decrease in government purchases because
A) increase; current or future taxes will decrease, making them financially better off. B) decrease; current or future taxes will decrease, making them financially better off. C) decrease; current or future taxes will increase, making them financially worse off. D) increase; current or future taxes will increase, making them financially worse off.
For a mortgage lender that makes mortgage loans to borrowers, which one of the following would be an example of adverse selection?
a. After the loan has been made, individuals become careless with their finances b. Individuals most likely to default are the ones most likely to apply for the loan c. Borrowers investing their loan proceeds differently than the bank requires d. None of the above
An increase in wages can cause a relatively big decrease in employment when
a. product demand is inelastic b. labor demand is elastic c. there is a closed shop d. the MRP curve is inelastic e. the MRP curve shifts to the right
Answer the following statement(s) true (T) or false (F)
1. Increased taste for European goods in the United States leads to decreased demand for euros. 2. Any change in the average income of U.S. consumers will also change the equilibrium exchange rate, ceteris paribus. 3. When the dollar depreciates, this means that a dollar can buy more units of foreign currency than before. 4. If Europe experiences a higher inflation rate than does the United States, European products become less expensive to U.S. consumers. 5. Governments were unable to agree on an alternative fixed-rate approach when the Bretton Woods system collapsed.