A possible reason to impose a protectionist policy such as a tariff is to
A) slow domestic production.
B) protect domestic workers from foreign competition.
C) aid other nations in developing their own industries.
D) increase the welfare of domestic consumers.
B
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Refer to Figure 29-1. The depreciation of the dollar is represented as a movement from
A) B to C. B) B to A. C) D to C. D) A to C. E) A to B.
According to the monetarists, when the expected rate of inflation rises, the short-run Phillips curve
a. shifts upward. b. shifts downward. c. is unaffected. d. None of the above
If indicators like weak demand and falling commodity prices caused concern about deflation (falling prices), what could the Fed do to head off the deflationary threat?
a. increase the reserve requirements imposed on banks b. buy bonds in order to expand the money supply c. increase the discount rate d. increase the national debt
Which of the following events would cause the interest rate to rise?
a. a decrease in the demand for loanable funds b. an increase in the demand for loanable funds c. an increase in the supply for loanable funds d. a decrease in aggregate demand