If budget deficits are financed by borrowing the crowing-out effect can be offset by an increase in?
A. government expenditure B. savings C. interest rates D. exchange rates Correct Answer: Option D – exchange rates
When the importation of a commodity is limited to a definite quantity; the trade control means used is known as?
A. exchange control B. tax relief C. devaluation D. quotas Correct Answer: Option D – quotas
The European Union was formed to?
A. promote free trade within member nations B. promote economic integration in non-member countries C. assist countries to achieve their economic goals D. finance development projects in member nations Correct Answer: Option A – promote free trade within member...
A country is said to have absolute advantage when she?
A. has a higher opportunity cost in the production of a good B. can sell to other countries without buying from them C. can produce more of any good with fewer resources D. has a lower opportunity cost in the production of good Correct Answer: Option C – can...Products
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