All of the following statements are true except
A. Until 1971 the United States had run a trade surplus virtually every year of the 20th century.
B. The U.S. ran relatively small trade deficits through most of the 19th century.
C. The U.S. was the only industrial power to raise tariffs during the 1930s.
D. World trade in the 1930s dwindled to a fraction of what it had been in the 1920s.
C. The U.S. was the only industrial power to raise tariffs during the 1930s.
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Everything else held constant, if a central bank makes an unsterilized purchase of foreign assets, then the domestic money supply will ________ and the domestic currency will ________
A) increase; appreciate B) increase; depreciate C) decrease; appreciate D) decrease; depreciate
Suppose that one-year Treasury bills yield 4 percent in the United States and 5 percent in Germany. Investors will be indifferent between them if they expect the dollar over the next year to
A) depreciate against the euro by approximately 1 percent. B) appreciate against the euro by approximately 1 percent. C) depreciate against the euro by exactly 20 percent. D) appreciate against the euro by exactly 20 percent.
Economists believe that trade is necessary for prosperity because
a. every country lacks some vital resources that it can get only by trade. b. each country's climate makes it a relatively efficient producer of some goods, and an inefficient producer of other goods. c. specialization permits large outputs and can produce economies of scale. d. All of the above are correct.
International trade:
A. Raises the prices that consumers pay. B. Reduces competition. C. Makes a country weak. D. Increases consumption possibilities.