Which of the following is the best example of a tariff?
A) a limit imposed on the number of sports utility vehicles that the United States can import from Japan
B) a subsidy granted by the U.S. government to domestic sports utility vehicle manufacturers so they can compete more effectively with foreign sports utility vehicle manufacturers
C) a tax placed on all sports utility vehicles sold in the domestic market
D) a $5,000 per-car fee imposed on all sports utility vehicles imported into the United States
Answer: D
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A. recessionary; A B. recessionary; C C. recessionary; B D. expansionary; A
All of the following are cited as potential explanations for the decrease in demand for Kleenex-brand facial tissues except:
A) consumers switching to substitute products. B) market entry by lower-priced private brands. C) the failure of the producer of Kleenex tissues to develop any new and innovative products.
If the economy is expecting a severe recession, which fiscal policy would you recommend?
A. Reduce spending for welfare programs. B. Reduce overall government spending. C. Increase taxes to reduce consumption. D. Reduce personal and corporate income taxes.
Give five examples showing how different factors affect interest rate calculations
What will be an ideal response?