If higher tariffs, such as those enacted by the Smoot-Hawley trade bill, reduce the imports of the United States, which of the following will be most likely to occur?
a. U.S. employment will increase.
b. The unemployment rate of the United States will decline.
c. U.S. exports will increase because foreigners will want to buy more from U.S. producers.
d. U.S. exports will decline because foreigners will be earning fewer of the dollars needed to purchase goods and services from Americans.
D
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An individual firm desiring to obey the letter of the law while avoiding the effects of regulation may use
a. predatory pricing. b. tit-for-tat strategies. c. creative response. d. collusion.
________ are costs that, once committed, can never be recovered and should not affect current and future production costs
A) Opportunity costs B) Marginal costs C) Sunk costs D) Variable costs
If the Federal Reserve wants to reduce inflation from 4 percent to 3 percent permanently, how can that goal be achieved, and what impact will that have on employment in the short run and the long run? Support your answer with a graph of the Phillips
curve in the short run and the long run.
The issuance of debt involves some intergenerational transfer of income; long after the debt is issued, a new generation of taxpayers must make interest payments on the debt
a. True b. False Indicate whether the statement is true or false