When a country abandons no-trade policies in favor of free-trade policies and becomes an importer of steel, then the domestic price of steel will increase as a result
a. True
b. False
Indicate whether the statement is true or false
False
You might also like to view...
The Fed increases the quantity of money to counteract
A) a federal budget surplus. B) an inflationary ga
Generally speaking, income inequality is
A) higher in Europe than in the United States. B) higher in the United States than in most of the developing world. C) extremely high and does not vary much between nations in the developing world. D) higher in the developing world than in the developed world.
When a surplus exists in a market, sellers
a. raise price, which increases quantity demanded and decreases quantity supplied, until the surplus is eliminated. b. raise price, which decreases quantity demanded and increases quantity supplied, until the surplus is eliminated. c. lower price, which increases quantity demanded and decreases quantity supplied, until the surplus is eliminated. d. lower price, which decreases quantity demanded and increases quantity supplied, until the surplus is eliminated.
The Friedman-Phelps analysis shows that a negative relationship between inflation and unemployment holds
A. even when the natural rate of unemployment changes. B. even when expected inflation changes. C. as long as the expected inflation rate and the natural rate of unemployment are approximately constant. D. even if both the expected inflation rate and the natural rate of unemployment change.