A tariff is most likely to _______ prices and _______ consumption of the good or service being protected.
A) lower; increase
B) increase; decrease
C) have no effect on; not change
D) lower; lower
Ans: B) increase; decrease
Economics
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In recent years, a monetary growth rule has fallen out of favor because
A) the close relationship between movements in M1 and movements in real GDP has become weaker. B) it is believed that active monetary policy destabilizes the economy and makes the business cycle worse. C) the growth rate of GDP has been highly unstable. D) the growth rate of M1 has become more stable.
Economics
The equation Y = f(P - Pe) represents the
A. income velocity of money. B. Lucas supply function. C. Keynesian consumption function. D. equation of exchange.
Economics