A large country imposes capital controls that prohibit foreign borrowing and lending by domestic residents. The country is currently running a financial account deficit. The imposition of the capital controls will cause
A. net exports to increase.
B. desired national saving to fall.
C. real domestic interest rates to rise.
D. real world interest rates to fall.
Answer: B
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Dumping refers to selling a commodity abroad at a price that is below its cost of production or below the price charged in the domestic market
a. True b. False
The failure of communism in a large number of countries is at least partly explained by
a. the fact that those countries relied absolutely on the invisible hand. b. the fact that those countries did little or nothing to restrict trade with other countries. c. the lack of information, on the part of central planners in those countries, about tastes and preferences in their economies. d. the lack of information, on the part of central planners in those countries, about how much authority the government had in affecting economic outcomes.
Economic stagnation coupled with high inflation is commonly called:
A. stagflation. B. inflationary stagnation. C. stagnatory growth. D. inflagnation.
"It is possible to restrict imports and still maintain a fixed level of exports." Do you agree or disagree? Why?
What will be an ideal response?