Protectionism may fail to reduce a current account deficit because it
a. depreciates the dollar.
b. invites retaliation, which hurts exports.
c. encourages exports.
d. does not reduce imports.
b
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According to your textbook, the current war on drugs in the United States has similar consequences to the earlier prohibition on alcohol. The similar consequences include
A) an underground supply and demand process. B) the production of more powerful and dangerous forms of the illegal products. C) production and distribution being controlled by people with a comparative advantage in crime D) All of the above. E) None of the above.
Ford Motor Company started producing the Model A at plants scattered around the United States
A) to locate its production centers closer to its customers. B) because it was not able to attract skilled workers in Michigan (where its first plant was located). C) because diseconomies of scale at its initial River Rouge plant resulted in high production costs. D) to save on transport costs.
In the Classical model, a decrease in the money supply __________ the real GDP and __________ the price level
A) leaves unchanged; leaves unchanged B) leaves unchanged; lowers C) lowers; lowers D) lowers; leaves unchanged
Other things the same, an increase in the expected price level shifts
a. short-run aggregate supply right. b. short-run aggregate supply left. c. aggregate-demand right. d. aggregated-demand left.