A tariff can be defined simply as a
a. tax on imports.
b. tax on exports.
c. legal limit on imports.
d. legal limit on exports.
A
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Large countries tend to be more open than small countries
Indicate whether the statement is true or false
The real interest rate for investments reflects not only the short-term real interest rate set by the central bank, but also the financial frictions
When the policy rate has hit the floor of zero, to stimulate the economy at given inflation rates, policymakers can A) lower the financial frictions. B) lower the short-term real interest rate. C) lower both the short-term real interest rate and the financial frictions. D) lower the policy rate.
During a severe winter, the price of home heating oil is expected to be more than it would be during a normal winter
What will be an ideal response?
Suppose there is a decrease in both the demand for and supply of a good. What happens to equilibrium price and quantity?
A. Equilibrium quantity increases, but the effect on equilibrium price is ambiguous. B. Equilibrium quantity decreases, but the effect on equilibrium price is ambiguous. C. Equilibrium price increases, but the effect on equilibrium quantity is ambiguous. D. Equilibrium price decreases, but the effect on equilibrium quantity is ambiguous.