If a tariff of $10 has no effect on the world price, the optimal tariff on that product
A) is $10.
B) is zero.
C) is higher than $10.
D) depends upon the amount of government revenue collected.
B
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A change in the price level
A) shifts the AE curve and creates a movement along the AD curve. B) creates a movement along both the AE curve and the AD curve. C) shifts the AE curve and the AD curve in opposite directions. D) creates a movement along the AE curve and shifts the AD curve. E) shifts the AE curve and the AD curve in the same direction.
Which of the following increases money demand?
A) Disruptions in the banking system. B) The introduction of online banking. C) The wider availability of ATMs. D) The introduction of deposit insurance.
The merchandise trade balance of a country equals the value of exported goods minus the value of imported goods
Indicate whether the statement is true or false
If S1 moves to S2 and D1 moves to D2, which of the following would happen?
a. P1 would move to P2.
b. P2 would move to P1.
c. Q2 would move to Q1.
d. E1 would be indeterminate.