A tariff can best be described as:
A. an excise tax on an imported good.
B. a government payment to domestic producers to enable them to sell competitively in world
markets.
C. an excise tax on an exported good.
D. a law that sets a limit on the amount of a good that can be imported.
A. an excise tax on an imported good.
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Which of the following statements about the balance of payments accounts is CORRECT?
A) The current account must be greater than the capital and financial account. B) The sum of all three accounts is always zero. C) The official settlements account is typically larger than both the capital and financial account and the current account. D) Typically the capital and financial account is near zero because it equals the difference between the current account and the official settlements account.
Failure to coordinate monetary policies with ________ exchange rates can lead to ________ that might be offset by coordination
A) floating; negative externalities B) floating; sterilization C) fixed; negative externalities D) fixed; sterilization