Free trade
What will be an ideal response?
is reflected in a nation in which the government does not attempt to influence what its citizens can buy from another country by applying import duties or what citizens can produce and sell to another country
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If you overhear a group of people talking about their plans to save for their retirement and one of them says that it causes them to save less because, as they reason it, "the government is saving for me," you would attribute this to the
A. asset substitution effect. B. induced retirement effect. C. slovenly effect. D. bequest effect.
Given the following information about Metropolis Bank:
Bank Deposits $50,000 Loans 17,500 Required Reserves 30,000 Excess Reserves 2,500 The required reserve ratio must be A) 75 percent. B) 60 percent. C) 30 percent. D) 15 percent.
Short-run costs are never equal or lower than long-run cost
Indicate whether the statement is true or false
The purchasing power parity theory states that
A) exchange rates between any two currencies will adjust to reflect changes in the relative price level of the two countries. B) exchange rates between any two currencies will adjust to reflect change in the relative income growth rates of the two countries. C) the larger the economic growth rate in a country, the less likely its currency will depreciate in value. D) exchange rates cannot be compared over time. E) currencies appreciate as often as they depreciate.