Which factors contributed to a further reduction in the money supply in addition to the withdrawal of currency from banks during the 1930-1933 bank panic?
A. An increase in the required reserve ratio.
B. Bank purchases of government bonds to meet liquidity demands.
C. A decrease in the required reserve ratio.
D. Bank sales of government bonds to meet liquidity demands.
Answer: D
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Which of the following goods are most likely to be substitutes?
a. potato chips and chip dip b. bread and peanut butter c. ketchup and French fries d. bananas and apples
Steel producers in the United States observe that foreign sales of U.S. steel has drastically declined due to stringent trade policies adopted by the foreign governments and unfair treatment of U.S. steel exports in foreign countries. The lobbying efforts of such loss making U.S. steel manufacturers induce the domestic government to restrict the entry of imported steel and help stimulate the
sales of domestically produced steel. Which of the following tariffs is most similar to the example mentioned above? a. A tariff imposed by the government to stimulate domestic production of a high-technology good with positive spillover effects b. A tariff imposed by the government on the import of cotton textiles because it is an infant industry in the domestic country c. An import tariff applied against a foreign monopoly supplying the domestic market d. Tariffs imposed by the government on an import competing industry that generates a negative production externality e. Reciprocal tariffs introduced by the government of a country as a call for fair trade
________________ is the analysis of how the burden of a tax is divided between consumers and producers:
a. Resale incidence. b. Price incidence. c. Cost incidence. d. Tax incidence.
By tradition, Japanese employers cannot "lay off" workers. As a result they have goods that they cannot sell on the domestic market without driving down prices. To minimize losses, they sell goods such as steel and televisions in foreign markets at prices well below those in Japan. This is called
a. beggar my neighbor. b. helpfulism. c. strategic trade policy. d. dumping.