Following the tariff imposed on Chinese tires, some businesspeople correctly argued that the U.S. tariff would result in
A) China retaliating by raising tariffs on some U.S. exports.
B) China halting the sale of all products in the United States.
C) U.S. firms never being able to meet the demand for U.S.-produced tires.
D) the government demanding price cuts from U.S. tire manufacturers.
Ans: A) China retaliating by raising tariffs on some U.S. exports.
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Answer the following statement true (T) or false (F)
Refer to Figure 4-15. What is the size of the per-unit tax?
A) $2 B) $5 C) $7 D) $12
Which of the following is likely to have the widest bid-asked spread?
A) A U.S Treasury bill B) A U.S. Treasury note C) A U.S. Treasury bond D) A municipal bond
The typical result of an adverse supply shock is
a. falling output accompanied by accelerating inflation. b. falling output accompanied by decelerating inflation. c. rising output accompanied by accelerating inflation. d. rising output accompanied by decelerating inflation.