Contractionary policies help correct a balance of payments deficit by
a. lowering domestic incomes but raising demand for imports
b. raising domestic incomes but lowering demand for imports
c. raising both domestic incomes and demand for imports
d. lowering both domestic incomes and demand for imports
e. lowering interest rates and increasing aggregate spending
D
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Using a model of imperfect competition, economist Daniel Trefler concluded that the North American Free Trade Agreement:
a. cost Canada more than 100,000 jobs that were never replaced. b. presented no real issue about job loss in Canada. c. caused Canada to lose 5% of jobs in manufacturing because Canadian tariffs had to be cut, but over time the trade agreement created higher productivity and more jobs to offset losses. d. created new jobs in Canada from day one, as firms sold across the border and undercut U.S. firms.
All else equal, oil price increases decrease annual oil consumption and therefore decrease the number of years until the oil stock is depleted
Indicate whether the statement is true or false