If a nation imposes a tariff on an imported product, then the nation will experience a(n):
A. Decrease in total supply and an increase in the price of the product
B. Decrease in demand and a decrease in the price of the product
C. Decrease in supply of, and an increase in demand for, the product
D. Increase in supply of, and a decrease in demand for, the product
A. Decrease in total supply and an increase in the price of the product
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If the Fed pursues expansionary monetary policy then
A) the money supply will increase, interest rates will rise and GDP will rise. B) the money supply will decrease, interest rates will fall and GDP will fall. C) the money supply will decrease, interest rates will rise and GDP will fall. D) the money supply will increase, interest rates will fall and GDP will rise.
If an economy is operating on its production possibilities curve for consumer goods and capital goods, this means that:
A. it is impossible to produce more consumer goods. B. resources cannot be reallocated between the two goods. C. it is impossible to produce more capital goods. D. more consumer goods can only be produced at the cost of fewer capital goods.