One reason why most economists forecast that the effects of NAFTA on the U.S. economy would be small is because
A) NAFTA does not bring down tariffs far enough.
B) the Mexican economy is small relative to the U.S. economy.
C) NAFTA trade opening provisions only cover a handful of sectors.
D) Mexico was not expected to live up to its obligations under the agreement.
B
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When the Federal Reserve was formed, state-chartered banks were __________ Fed member banks
A) automatically made B) required to become C) given the option to become D) not allowed to become
If a 10 percent price increase causes the quantity demanded for a good to decrease by 10 percent, demand is unitary elastic
a. True b. False Indicate whether the statement is true or false
A bank has a 20 percent reserve requirement, $8,000 in loans, and has loaned out all it can given the reserve requirement
a. It has $6,400 in deposits. b. It has $10,000 in deposits. c. It has $9,600 in deposits. d. It has $1,600 in deposits.
When the firm increases output and the costs rise disproportionately faster, then the long-run average cost curve is ________ and the firm is experiencing ________.
A. horizontal; constant returns to scale B. downward sloping; constant returns to scale C. upward sloping; diseconomies of scale D. downward sloping; economies of scale