Suppose a country increases trade restrictions. This country would be pursing an
a. inward policy, which most economists believe has beneficial effects on the economy.
b. inward policy, which most economists believe has adverse effects on the economy.
c. outward policy, which most economists believe has beneficial effects on the economy.
d. outward policy, which most economists believe has adverse effects on the economy.
b
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Suppose that you are a bank manager, and the Federal Reserve raises the required reserve ratio from 10% to 12%. What actions would you need to take?
A. You would have to reduce lines to make up for the necessary increase in reserves B. You would need to make loans to match the new reserve requirement C. You would have to charge less for your loans because rates are now at 12%
If the purpose of a tax is to raise revenue, it would be best for government to place the tax on which of the following goods?
a. a non-essential good, such as holiday travel b. a good whose demand curve is highly elastic c. a good that has several close substitutes d. a good whose demand curve is highly inelastic e. a good whose demand curve is unit elastic