Import bans, import quotas, voluntary export restraints (VERs), and tariffs on goods all:
A. increase imports and raise prices for consumers.
B. reduce imports and prices for consumers.
C. reduce imports and raise prices for consumers.
D. increase imports and reduce prices for consumers.
Answer: C
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Which of the following does NOT shift the demand curve for broccoli?
A) an increase in the cost of fertilizer used to grow broccoli B) a warning by the U.S. Surgeon General that broccoli causes schizophrenia C) an increase in the price of spinach, a substitute for broccoli, because rodents gobbled up much of this year's spinach crop D) a decrease in the price of spinach, a substitute for broccoli, because of a bumper crop of spinach this year
Suppose the Federal Reserve decides to increase the proportion of deposits that banks must hold from 1% to 3%. Which monetary policy tool is it using?
a) Reserve requirements b) Discount rate c) Open market operations d) Infrastructure spending