Which of the following will most likely occur in an economy if more money is demanded than is supplied?
Interest rates will increase
.
Which of the following would cause the U.S. dollar to increase in value compared to the Japanese yen?
Which of the following would cause the United States dollar to increase in value compared to the Japanese yen?
With an increase in investment demand in the United States, the real interest rate rises
.
Which of the following would be most likely to occur if the US placed high tariffs on imported goods?
10. Which of the following would be most likely to occur if the United States placed high tariffs on imported goods? Explanation:
High tariffs would protect less efficient domestic producers from foreign competition
.
What are the positive and negative effects of tariffs?
Tariffs increase the prices of imported goods
. Because the price has increased, more domestic companies are willing to produce the good, so Qd moves right. This also shifts Qw left. The overall effect is a reduction in imports, increased domestic production, and higher consumer prices.
When a country imposes tariffs it is likely to cause?
When a country imposes tariffs, it is likely to cause:
Higher prices for the import-competing goods
. Tariffs tend to reduce the volume of imports by: Making them more expensive to domestic consumers.
What is the result of an increase in the money supply?
An increase in the supply of money typically
lowers interest rates
, which in turn, generates more investment and puts more money in the hands of consumers, thereby stimulating spending. Businesses respond by ordering more raw materials and increasing production.
Which of the following would likely result in cost push inflation?
Cost-push inflation occurs when the supply of a good or service changes, but the demand for it stays the same. It occurs most often when a monopoly exists,
wages increase
, natural disasters occur, regulations are introduced, or exchange rates change.
Which of the following would cause the US dollar to depreciate?
A variety of economic factors can contribute to depreciating the U.S. dollar. These include
monetary policy, rising prices or inflation, demand for currency, economic growth, and export prices
.
When the international value of the dollar decreases?
When the international value of the dollar decreases,
Americans pay less for foreign goods
. the U.S. trade deficit increases. U.S. imports decrease. Americans would demand more foreign currency.
Which of the following best explains why many United States economist support free international trade?
1. Which of the following best explains why many United States economists support free international trade? (D)
The long-run gains to consumers and some producers exceed the losses to other producers
. Explanation: Although free trade creates both winners and losers, the gains from trade outweigh the costs.
Who benefits from a tariff?
Tariffs mainly benefit
the importing countries
, as they are the ones setting the policy and receiving the money. The primary benefit is that tariffs produce revenue on goods and services brought into the country. Tariffs can also serve as an opening point for negotiations between two countries.
Which of the following are the two primary effects of tariff?
Tariffs
increase the prices of imported goods
. … Because the price has increased, more domestic companies are willing to produce the good, so Qd moves right. This also shifts Qw left. The overall effect is a reduction in imports, increased domestic production, and higher consumer prices.
What were some problems caused by high tariffs?
How did high tariffs damage the US economy? Historical evidence shows that
tariffs raise prices and reduce available quantities of goods and services for U.S. businesses and consumers
, which results in lower income, reduced employment, and lower economic output. Tariffs could reduce U.S. output through a few channels.
Are tariffs good or bad for the economy?
Historical evidence shows that
tariffs raise prices and reduce
available quantities of goods and services for U.S. businesses and consumers, which results in lower income, reduced employment, and lower economic output. Tariffs could reduce U.S. output through a few channels.
When tariffs are imposed the losers include Group of answer choices?
When tariffs are imposed, the losers include:
Domestic consumers and foreign producers
.
What are examples of non tariff barriers?
Common examples of non-tariff barriers include
licenses, quotas, embargoes, foreign exchange restrictions, and import deposits
.
