Which of the following is true (assume the small country case)?
A) With a quota, an increase in demand leads to a higher price and more imports.
B) With a tariff, an increase in demand leads to a higher price and more imports.
C) With either a tariff or a quota, an increase in demand leads to a higher price and more imports.
D) None of the above are true.
D
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Suppose the majority of the shares of Yahoo stock were sold to an Italian firm. Other things equal, this will
A) increase the balance of the U.S. current account. B) increase the balance of the U.S. financial account. C) create a capital outflow in the United States. D) decrease net portfolio investment in the United States.
Globalization had to be put into effect to revive developed economies after the financial crises of the 1990s
a. True b. False Indicate whether the statement is true or false
If the MPC is .50 and the equilibrium GDP is $40 billion below the full-employment GDP, then the size of the recessionary expenditure gap is:
A. $40 billion. B. $20 billion. C. $60 billion. D. $80 billion.
With the Lucas supply function, a price surprise means
A. actual price is greater than expected price. B. actual price is less than expected price. C. actual price is either greater than or lower than expected price. D. actual price equals expected price.