Higher tariffs and quotas cause a country's currency to ________ in the ________ run, everything else held constant
A) depreciate; short
B) appreciate; short
C) depreciate; long
D) appreciate; long
D
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In the short run, movements in exchange rates are caused largely by economic fluctuations
a. True b. False
Using the saving-investment approach, which of the following describes an equilibrium condition of GDP?
a. I = X ? IM b. S = X ? IM c. I = S + (X ? IM) d. S = I + (X ? IM)
Suppose farmers in a given market can either grow soy beans or corn on their land. In addition, suppose an increase in the demand for corn causes the price of corn to increase. As a result of the increase in the price of corn, farmers who were already growing corn will earn an:
A. economic loss in the short run. B. economic profit in the long run. C. economic loss in the long run. D. economic profit in the short run.
Sanjay has an ATV that he values at $3,000. Marilu is looking for a similar ATV but will only pay up to $2,400
Will trade between these two occur? Is there a policy government could implement that would encourage a trade to occur between Sanjay and Marilu? If so, what is that policy and will the policy make society richer?