One economic truism is that any nation's restriction of imports will ultimately lead to
A) an increase in exports.
B) a reduction in exports.
C) an economic upswing.
D) an increase in GDP.
B
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A decrease in a person's real wage necessarily means: a. lower purchasing power
b. a lower nominal wage. c. a lower personal disposable income. d. a higher nominal wage. e. a higher personal disposable income.
A sign that Country A is under pressure to devalue its currency is its:
a. Current account is in deficit. b. Overall balance is in surplus. c. Reserves account is in deficit (i.e., negative). d. Overall balance is in deficit.
Suppose that rising productivity increases potential output in each period by 4%. What kind of monetary policy would be needed to maintain a zero rate of inflation at full employment?
A. It should keep money supply constant. B. It should increase money supply by 4% in the first period and thereafter, hold money supply constant. C. It should increase money supply by 4% per period. D. It should decrease money supply by 4% each period.
If the price of housing (which accounts for 40 percent of total expenditures in the CPI basket), rises by 5 percent in one year while the prices of all other goods remain constant, by how much will the CPI rise?
A. 10 percent B. 2 percent C. 5 percent D. 40 percent