The amount of time it takes for fiscal policy to have an impact on the economy creates:
A. a direction lag.
B. an implementation lag.
C. an information lag.
D. a formulation lag.
Answer: B
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An example of a nontariff barrier is a:
A) limit on the total number of Honda automobiles imported from Japan. B) regulation specifying that each imported Honda automobile must meet certain emission exhaust guidelines. C) tax of $500 on each Honda automobile produced in the United States. D) subsidy from the Japanese government of $500 for each Honda automobile imported into the United States.
Refer to the diagram. Other things equal, a leftward shift of the demand curve would:
The following diagram is a flexible exchange market for foreign currency:
A. depreciate the dollar.
B. appreciate the euro.
C. reduce the equilibrium quantity of euros.
D. cause a surplus of euros.