The results of a U.S. quota on the importation of Japanese automobiles is likely to _______ for automobiles in the United States and _______ automobiles in Japan.
A) decrease the demand; increase the demand for
B) reduce the quantity demanded; increase the quantity demanded of
C) increase the quantity demanded; increase the quantity demanded of
D) increase the demand; decrease the demand for
Ans: B) reduce the quantity demanded; increase the quantity demanded of
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In late 2008, the U.S. government extended unemployment insurance benefits for seven additional weeks, in recognition of the growing unemployment problem. This extension is an example of
A) automatic fiscal policy. B) discretionary fiscal policy. C) expansionary monetary policy. D) supply-side fiscal policy.
The usefulness of a model is determined by
A) whether it helps to explain or predict real world phenomena. B) whether it possesses realistic assumptions. C) how well it uses the ceteris paribus assumption. D) how many of the possible relationships that exist are included in the model.