Import taxes are levied to generate revenue and encourage imports

In the figure above, suppose the economy is initially at point B. Then the interest rate in Japan rises relative to the interest rate in the United States. This change ________ the supply of dollars and the market moves to a point such as ________

A) decreases; A B) decreases; E C) increases; D D) increases; C

Net entrants to the labor force is likely to be highest when the economy ________

A) is entering a recession B) nears the peak of an expansion C) has passed the peak of an expansion D) begins to recover from a recession