The U.S. tariff on paper ____ the U.S. price of paper, _____ U.S. production of paper and _______the U.S. gains from trade
A. raises; increases; increases
B. doesn't change; increases; increases
C. doesn't change; doesn't change; decreases
D. raises; increases; decreases
D Figure 8.6 in the textbook illustrates these results.
You might also like to view...
Scarce goods are: a. desirable and unlimited in amount
b. undesirable and unlimited in amount. c. desirable and limited in amount. d. undesirable and limited in amount.
A borrower who makes a $1,000 loan for one year and earns interest in the amount of $75, earns what nominal interest rate and what real interest rate if inflation is two percent?
A. A nominal rate of 7.5% and a real rate of 5.0%. B. A nominal rate of 5.5% and a real rate of 2.0%. C. A nominal rate of 7.5% and a real rate of 9.5%. D. A nominal rate of 7.5% and a real rate of 5.5%.
A temporary decrease in the price of oil would be considered a:
A. long-run supply shock. B. demand shock. C. short-run supply shock. D. The changing price of oil would not affect any of these.
When bank deposits increase from $1 million to $2 million, bank reserves increase from $100,000 to $200,000. If banks hold no excess reserves, then the required reserve ratio is
What will be an ideal response?