If the economic growth rate INCREASES from 1% to 5%, the simple accelerator hypothesis suggests that
A) investment will continue to rise as output increases.
B) investment will fall as output increases.
C) investment will rise since the rate of change in output increases.
D) None of the above is correct.
C
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A tariff is a tax on ________ goods that is designed to ________
a. exported; protect domestic industries b. exported; hurt foreign industries c. imported; make domestic consumers pay more d. imported; protect domestic industries e. domestic; discourage imports
It has been suggested that in order to protect U.S. jobs we need to restrict foreign competition by restricting imports
A) This is a sound economic statement since the U.S. will still export protecting U.S. jobs. B) This is a sound economic statement since U.S. firms will have to increase output to make up for the lack of imports leading to increase employment in the U.S. C) This is not a sound economic statement since employment in the U.S. does not depend on imports and exports. D) This is not a sound economic statement since import restrictions lead to a reduction in employment in the export industries of the U.S.