The main purpose of most tariffs and quotas is to
A) reduce the foreign competition that domestic firms face.
B) improve the quality of goods and services imported into the country.
C) raise revenue for the government.
D) reduce the prices consumers pay for goods and services.
A
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In reference to the federal income tax system, a tax bracket is
A) the income range within which a tax rate applies. B) the estimated amount of federal income tax firms withhold from their employees' paychecks. C) the formula the federal government uses to determine the dollar amount of the personal exemption and the amounts taxpayers are allowed for deductions from their incomes. D) used to determine the average tax rate.
Exhibit 17-2 Aggregate demand and aggregate supply curves
As shown in Exhibit 17-2, if people behave according to rational expectations theory, an increase in the aggregate demand curve from AD1 to AD2 will cause the price level to move:
A. directly from 100 to 105 and then remain at 105. B. directly from 100 to 110 and then remain at 110. C. from 100 to 105 initially and then eventually move back to 100. D. from 100 to 105 initially and then eventually move to 110.