If the U.S. trade deficit was reduced in a rush, what would be a possible result?
a. decreasing inflation and increasing unemployment
b. increasing inflation and decreasing unemployment
c. increasing inflation and increasing unemployment
d. decreasing inflation and decreasing unemployment
c. increasing inflation and increasing unemployment
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Tariffs create deadweight losses and destroy wealth, whereas quotas increase cooperative surplus and create wealth
Indicate whether the statement is true or false
A Commodity X will be considered as a normal good if:
a. the quantity of the good consumed decreases with an increase in income. b. the quantity of the good consumed increases with an increase in income. c. the quantity of the good consumed increases in the same proportion as the increase in income. d. the quantity of the good consumed reflects no change with a change in income.