An export subsidy will cause the relative demand for ________ to ________ and the relative supply for ________ to ________
A) exports; decrease; exports; increase
B) imports; decrease; imports; increase
C) imports; increase; imports; decrease
D) exports; increase; exports; decrease
E) exports; increase; imports; decrease
A
You might also like to view...
Which of the following is an example of a discretionary fiscal policy during a recession?
A) A temporary tax cut to boost consumption B) A decrease in money supply to lower the federal funds rate C) A decrease in transfer payments to unemployed workers D) An increase in tax rates to increase revenue
The profits of a proprietorship are
A) taxed at the same rate as the owner's other personal income. B) subject to a corporate tax. C) taxed as capital gains indexed for inflation. D) exempt from taxation.
Suppose that households became mistrustful of the banking system and decide to decrease their checking account balances and increase their holdings of currency
Using the money demand and money supply model and assuming everything else is held constant, the equilibrium interest rate should A) decrease. B) increase. C) not change. D) increase, then decrease.
Keynes called the money people hold in order to buy bonds, stocks, or other nonmoney financial assets the:
A. transactions demand for holding money. B. precautionary demand for holding money. C. speculative demand for holding money. D. unit of account demand for holding money.