Protectionism may fail to reduce a current account deficit because it
A. depreciates the dollar.
B. invites retaliation, which hurts exports.
C. encourages exports.
D. does not reduce imports.
Answer: B
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The money supply curve is vertical if
A) the Fed is able to completely determine the money supply. B) banks and households determine the money supply. C) banks and the Fed jointly determine the money supply. D) households and the Fed jointly determine the money supply.
Monopolistically competitive firms use product differentiation to increase the price elasticity of demand
a. True b. False
When GDP is less than total spending, GDP will fall
a. True b. False Indicate whether the statement is true or false
If total imports exceed total exports, other things being constant, then
A. net exports are negative. B. net exports are positive. C. GDP rises. D. investment rises.