"It is possible to restrict imports and still maintain a fixed level of exports." Do you agree or disagree? Why?
What will be an ideal response?
Disagree. If people sell fewer imports to the United States they have less dollars with which to buy United States exports. Since imports ultimately are paid for by exports, a restriction on imports will reduce exports, at least in the long run.
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A loaf of bread purchased by one of your instructors would be best described as
A) an intermediate good. B) a financial asset. C) a used good. D) a final good.
Which statement is false?
A. The 1990s was one of the most prosperous decades in the United States' history. B. The United States' economy reached its tenth year of steady expansion in the spring of 2001. C. Compared to other decades, the 1990s was a decade was unique in that it had strong economic growth with no recessions. D. At the end of the 1990s, the government was running budget surpluses.