When the United States imposed a 25% tariff on imported pickup trucks, the price of Japanese pickup trucks in the United States:
a. rose by 25%.
b. rose by less than 25%.
c. rose by more than 25%.
d. fell by less than 25%.
Ans: b. rose by less than 25%.
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If autonomous spending increases by $500 billion and, as a result, equilibrium real GDP increases by $2 trillion, then we know that the
A) expenditure multiplier is 0.25. B) MPC equals 1. C) expenditure multiplier is 4.0. D) expenditure multiplier is 2.0. E) MPC is greater than 1.
A financial asset is considered a security if
A) the owner of the security receives dividends and realizes a capital gain when the asset is sold. B) its value increases after it is sold in a primary market. C) it can be sold in a secondary market. D) its value is secure; that is, the owner will not suffer a financial loss when the asset is sold.
Refer to the information above. An economy's real GDP per person doubles every 18 years when it maintains a growth rate of ________ per year
A) 5.6 percent B) 4.0 percent C) 0.25 percent D) 0.9 percent
In equilibrium, the price of a transferable emissions permit
A) is constrained to the amount the government first charged for it. B) equals the marginal cost of abatement for all firms. C) equals the marginal cost of abatement for the firm with the highest cost, and exceeds the marginal cost of abatement of other firms. D) equals the marginal cost of abatement for the firm with the lowest cost, and is less than the marginal cost of abatement of other firms. E) equals the marginal social cost of emissions.