Contrast the effects of a U.S. tariff decrease and a U.S. tariff increase, ceteris paribus, on foreign exchange rates.
What will be an ideal response?
A decrease in U.S. tariffs on foreign goods would make foreign goods more affordable to U.S. residents. Americans would buy more imported goods. This increased demand for foreign goods would lead to increased demand for foreign currencies, resulting in a higher exchange rate for the foreign currencies relative to the U.S. dollar. An increase in U.S. tariffs on foreign goods would make foreign goods more expensive to U.S. residents. Americans would buy less imported goods. This decreased demand for foreign goods would lead to decreased demand for foreign currencies, resulting in a lower exchange rate for the foreign currencies relative to the U.S. dollar.
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The gross domestic product (GDP) concept accounts for society's valuation of the relative worth of goods and services by using a ________.
A. utility measure B. monetary measure C. measure of volume D. measure of physical weight
In the long run, we typically assume that ________
A) capital, labor, and technology are independent of the level of inflation B) the natural rate of unemployment is independent of the level of inflation C) aggregate supply is fixed and independent of the level of inflation D) all of the above E) none of the above
Public education is an in-kind benefit.
Answer the following statement true (T) or false (F)
About 1 out of every _______ Americans is poor.
A. 3 B. 4 C. 6 D. 8