Suppose a new EU member begins substituting its imports from non-EU members to other EU members. This is an example of
A. trade deflection.
B. trade diversion.
C. free trade.
D. trade detection.
Answer: B
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The prices of all fixed-income assets (bonds)
A) are independent of the interest rate. B) are determined by the U.S. Treasury. C) vary directly with the interest rate. D) vary inversely with the interest rate.
Entitlement spending is included in discretionary spending for the U.S. government
Indicate whether the statement is true or false
Since the abandonment of the Bretton Woods system, balance of payments considerations have become ________ important, and exchange rate considerations ________ important in the conduct of monetary policy
A) more; less B) more; more C) less; less D) less; more
If a perfectly competitive firm is producing the short-run profit-maximizing quantity and is earning positive economic profits, the firm should anticipate ________.
A) the market equilibrium price to increase B) earning economic profits indefinitely C) new firms to enter the market D) the market supply to decrease