Higher interest rates
A) reduce total planned real expenditures because they increase the cost of borrowing funds.
B) reduce total planned real expenditures because they reduce the income of bankers and other creditors.
C) increase total planned real expenditures because they increase the incomes of all people in the economy.
D) increase total planned real expenditures because they lower the costs of building new plants and equipment.
A
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A downfall of the infant-industry argument is that
a. most industries need protection when they are mature, not when they are first established. b. the amount of the tariff is unlikely to have much impact on the success of an infant industry. c. once a tariff is granted, political pressure will likely force withdrawal of the tariff before the industry matures. d. once established, a tariff is politically difficult to remove.
The network of suppliers needed to make a particular product is known as
A. the supply chain. B. net exports. C. the nonmarket economy. D. the network externality.