When the economy begins to slip into a recession, the automatic stabilizers cause transfer payments to ________ and tax collections to _________.

Exchange rates affect:

I. international trade flows. II. international investment flows. III. corporate earnings. a. I b. II and III c. I and II d. I, II, and III

The efficiency case made for free trade is that as trade distortions such as tariffs are dismantled and removed

A) government tariff revenue will decrease, and therefore national economic welfare will decrease. B) government tariff revenue will decrease, and therefore national economic welfare will increase. C) deadweight losses for producers and consumers will decrease, hence increasing national economic welfare. D) deadweight losses for producers and consumers will decrease, hence decreasing national economic welfare. E) government tariff revenue will increase, hence increasing national economic welfare.