The introduction of a tariff will be expected to
A. reduce imports.
B. increase the prices of exports but have no effect on the level of imports.
C. reduce the prices of exports but have no effect on the level of imports.
D. increase exports.
A. reduce imports.
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One of the implications of the kinked demand curve model is that even if a firm's costs change by a measurable amount, market price is unlikely to change. This helps explain the price rigidity observed in many oligopolistic markets
Indicate whether the statement is true or false
In the 1979-82 period, the Fed pursued a monetary policy which targeted the growth rate of the money supply. Given the effects of financial deregulation on money demand you would expect, ceteris paribus,
A) stable interest rates. B) volatile interest rates. C) a constant interest rate. D) slow growth in interest rates.