The exchange rate of currencies between countries affects the prices of the goods purchased and sold between them

When an expansionary fiscal policy increases market interest rates and lowers gross private investment in an economy, it is called the: a. countercyclical effect. b. policy lag effect

c. multiplier effect. d. crowding out effect.

Which of the following statements about a tariff and a quota is true?

A) With a tariff the government collects revenues, but not with a quota. B) With a quota the quantity of imports falls, but not with a tariff. C) With a tariff the domestic price of the good increases, but not with a quota. D) With a quota the domestic production of the good increases, but not with a tariff. E) all of the above