The Ricardian model of international trade demonstrates that trade can be mutually beneficial. Why, then, do governments restrict imports of some goods?
A) Trade can have significant harmful effects on some segments of a country's economy.
B) The Ricardian model is often incorrect in its prediction that trade can be mutually beneficial.
C) Import restrictions are the result of trade wars between hostile countries.
D) Imports are only restricted when foreign-made goods do not meet domestic standards of quality.
E) Restrictions on imports can have significant beneficial effects on domestic consumers.
A
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If a nation abandons its own currency and decides to use another nation's currency as its own circulating currency, this is known as:
a. euro-zoning. b. dollarization. c. a managed float. d. a Western regime.
If investment decreases by $20 billion and the MPC = 0.8, the resulting decrease in the consumption component of AD is: a. $16 billion
b. $4 billion. c. $100 billion. d. $80 billion.