Protectionism arises because
a. people misunderstand the benefits of free trade
b. trade generally harms some groups in society
c. the costs of free trade outweigh the benefits for all groups in society
d. the costs of trade for both exporting and importing nations outweigh the benefits
e. of a lack of comparative advantage
B
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The monopoly producer
a. sets MU equal to P. b. sets MR = MC. c. has MC > MU. d. sets MR = P.
Assume that the central bank lowers the discount to increase the nation's monetary base. If the nation has highly mobile international capital markets and a fixed exchange rate system, what happens to the quantity of real loanable funds per time period and current international transactions balance in the context of the Three-Sector-Model? State your answer after the macroeconomic system returns
to complete equilibrium. a. The quantity of real loanable funds per time period remains the same and current international transactions balance becomes more negative (or less positive). b. The quantity of real loanable funds per time period rises and current international transactions balance becomes more negative (or less positive). c. The quantity of real loanable funds per time period and current international transactions balance remain the same. d. The quantity of real loanable funds per time period rises and current international transactions balance remain the same. e. There is not enough information to determine what happens to these two macroeconomic variables.