A country's net welfare will increase when it imposes a tariff on a foreign monopolist if its:
a. terms-of-trade gain is greater than its increase in tariff revenues.
b. terms-of-trade gain is less than its increase in tariff revenues.
c. terms-of-trade gain is greater than its lost consumer surplus.
d. increase in tariff revenues is greater than its lost consumer surplus.
Ans: c. terms-of-trade gain is greater than its lost consumer surplus.
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The discount rate is the interest rate that
A) commercial banks charge their customers. B) commercial banks charge each other for the loan of reserves. C) the Fed charges the government for loans. D) the Fed charges commercial banks when it loans reserves to the banks. E) the Fed pays commercial banks on their reserves held at the Fed.
The value of the goods and services Australia purchases from the U.S. are less than the value of goods and services the U.S. purchases from Australia. The U.S. has
a. positive net exports with Australia and a trade surplus with Australia. b. positive net exports with Australia and a trade deficit with Australia. c. negative net exports with Australia and a trade surplus with Australia. d. negative net exports with Australia and a trade deficit with Australia.