Restrictions on imports
A) eventually reduce exports, too.
B) enhance economic welfare by encouraging more exports.
C) are the quickest way for a country in recession to start on a path of economic recovery.
D) usually have no long-run effects on an economy.
Answer: A
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Licensing and regulation of business activities by colonial governments
(a) occurred only infrequently. (b) was a common practice in early colonial times but the British eventually replaced it with a policy of laissez faire before the American Revolution. (c) was very common throughout the colonial period just as it is today. (d) is basically inconsistent with American concepts of freedom of enterprise and so has never been common practice in either colonial or modern times.
If the demand for loanable funds shifts to the left, then the equilibrium interest rate
a. and quantity of loanable funds rises. b. and quantity of loanable funds falls. c. rises and the quantity of loanable funds falls. d. falls and the quantity of loanable funds rises.