The production side efficiency loss of a tariff is caused by
A) higher profits gained by foreign producers.
B) the expansion of relative inefficient domestic production.
C) the contraction of domestic consumption.
D) the increase in government revenue.
B
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Term premium refers to
A) the average difference over a long period of the interest rate on long-term bonds and the interest rate on the short-term federal funds rate. B) the average difference over a long period of the interest rate on short-term financial instruments and the interest rate on the discount rate. C) the difference between the corporate bond rate and the risk-free rate of Treasury bonds. D) the difference between prime rate and the discount rate.
Suppose the real wage of a worker remains unchanged between Year 1 and Year 2 but the nominal wage decreases from $20 in Year 1 to $18 in Year 2. This implies that the price level has _____
Fill in the blank(s) with the appropriate word(s).
Based on the above figure, if countries "A" and "B" faced the production possibilities curves above, both countries would benefit if
A. they both produced both industrial and agricultural goods. B. they did not trade. C. "B" produced industrial goods, and "A" produced agricultural goods. D. "A" produced industrial goods, and "B" produced agricultural goods.
Explain how fiscal policy can correct a contractionary ga
What will be an ideal response?