Answer the following questions true (T) or false (F)
1. Free trade refers to trade between countries without government restrictions.
2. A quota is the same as a voluntary export restraint.
3. A quota is a numerical limit on the quantity of a good that can be imported.
1. TRUE
2. FALSE
3. TRUE
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Discuss why the Fed rarely changes the reserve requirements
A progressive tax is one in which the fraction of income paid in taxes rises as a person’s income increases.
Answer the following statement true (T) or false (F)
All of the following are possible explanations for why it took so long for trade balances to respond to the depreciation of the dollar EXCEPT
A) the prior increase in the value of the dollar had padded the profit margins of foreign producers. B) foreign trade barriers made it impossible for the United States to substantially expand exports it bought. C) there were still impacts from earlier appreciations working through the system. D) exports began to increase from a much lower base than imports.
The table above shows the transaction in Pinkland last year:
a) Calculate Pinkland's GDP. b) What approach did you use to make this calculation?