In 2002, the United States placed higher tariffs on imports of steel. According to the open-economy macroeconomic model this policy should have
a. reduced imports into the United States and made U.S. net exports rise.
b. reduced imports into the United States and made the net supply of dollars in the foreign exchange market shift right.
c. reduced imports of steel into the United States, but reduced U.S. exports of other goods by an equal amount.
d. reduced imports of steel into the United States and increased U.S. exports of other goods by an equal amount.
c
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In the years after 1998, the most severe recession occurred during
A) 1998. B) 2000-2001. C) 2008-2009. D) 1999-2001. E) 2005.
A bank has no excess reserves and demand deposit liabilities of $100,000 when the required reserve ratio is 20 percent. If the reserve ratio is raised to 25 percent, the bank's excess reserves will now be
A) -$5,000. B) -$1,000. C) $1,000. D) $5,000.