Which of the following resulted from the Smoot-Hawley trade bill of 1930?
a. The stock market began a steady recovery from the crash of October 1929.
b. Many countries responded by imposing higher tariffs on American products, and the volume of international trade fell sharply.
c. Imports decreased, while exports increased, resulting in an overall increase in GDP and tariff revenues.
d. The unemployment rate, which had been rising, began to steadily decline as jobs were protected by the trade restrictions.
B
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Which exchange rate is determined in international currency exchange markets?
a) Fixed exchange rate b) Floating or flexible exchange rate c) Pegged exchange rate d) Prime exchange rate
For any given increase in spending that is not directly caused by an increase in income, the impact on equilibrium GDP is greater than the initial spending increase
Indicate whether the statement is true or false