As a result of a tariff, domestic consumers buy
a. fewer units at a higher price.
b. fewer units at a lower price.
c. more units at a lower price.
d. more units at a higher price.
a. fewer units at a higher price.
You might also like to view...
The Classical macroeconomic model proposes that
A) real GDP equals potential GDP as long as inflation equals zero. B) government intervention is required to help the economy reach its potential. C) changes in the quantity of money are critical in driving economic growth. D) socialism produces the most efficient economic outcomes for a society. E) markets work efficiently to produce the best macroeconomic outcomes.
Is the CPI a biased measure of the inflation rate? Explain your answer
What will be an ideal response?
Alan Greenspan's overall approach to monetary policy:
a. has been partly credited for the expansion of the 1990s. b. relied heavily on the monetization of debt during economic downturns. c. typically responded to economic downturns by lowering the federal funds rate. d. Both a and b are correct. e. both a and c are correct.
If the marginal propensity to consume decreases, the marginal propensity to save decreases
a. True b. False Indicate whether the statement is true or false