It has been suggested that in order to protect U.S. jobs we need to restrict foreign competition by restricting imports
A) This is a sound economic statement since the U.S. will still export protecting U.S. jobs.
B) This is a sound economic statement since U.S. firms will have to increase output to make up for the lack of imports leading to increase employment in the U.S.
C) This is not a sound economic statement since employment in the U.S. does not depend on imports and exports.
D) This is not a sound economic statement since import restrictions lead to a reduction in employment in the export industries of the U.S.
Answer: D
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Deflation
a. increases incomes and enhances the ability of debtors to pay off their debts. b. increases incomes and reduces the ability of debtors to pay off their debts. c. decreases incomes and enhances the ability of debtors to pay off their debts. d. decreases incomes and reduces the ability of debtors to pay off their debts.
The theory that government borrowing may function like an increase in taxes is known as
A. the Ricardian equivalence theorem. B. Congressional Tax policy. C. the marginal propensity to consume. D. planned tax policy.