Which of the following is true of a voluntary export restraint (VER)?
A. A voluntary export restraint usually requires that the foreign exporting firms act like a cartel, restricting sales and raising prices.
B. A voluntary export restraint ensures that foreign exporting firms are unable to exercise monopoly power.
C. Voluntary export restraints have mostly been used by developing countries to protect their domestic industries.
D. A voluntary export restraint generates more revenue for the government of the importing country than would a tariff or quota.
Answer: A
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A) lower; increases B) lower; decreases C) higher; decreases D) lower; does not change E) higher; increases
By announcing a higher inflation target, a central bank can
A) permanently increase real GDP and permanently decrease the unemployment rate. B) temporarily increase real GDP and permanently decrease the unemployment rate. C) permanently increase real GDP and temporarily decrease the unemployment rate. D) temporarily increase real GDP and temporarily decrease the unemployment rate.
During the period _____, the short-run Phillips curve for the United States was farthest from the origin
a. 1960 to 1964 b. 1964 to 1969 c. 1970 to 1973 d. 1974 to 1983 e. 1984 to 1989
The sum of capital inflows and the trade balance must be zero
a. True b. False Indicate whether the statement is true or false