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If the United Kingdom decided to switch from the pound to the euro, how might this decision affect the value of the euro in foreign exchange markets?
Is there any reason to believe that a trade deficit with any particular nation is of particular importance? If South Carolina runs a trade deficit with Texas.
What would have happened to the rebuilding effort if European politicians had sought to reduce their trade deficit with the US by imposing high import tariffs?
What would have been the likely consequences for the development of the American economy between the Civil War and World War I.
How does the concept of buy local relate to concerns about trade deficits on an international basis?
Why can't competing producers in different states prevent imports into their own state?
What effect does such policy have on our imports of foreign goods and thus on employment in industries that compete with imports?
Who gains and who loses from import restrictions? In answering, you should consider both consumers and producers in both the country that imposes restrictions.
How do you predict that members of Congress from coastal states would vote on proposals to restrict international trade?
If it would be cheaper to give each steelworker $375,000 per year in cash than impose. Why do we have the import restrictions rather than the cash payments?
Who bears the costs and enjoys the benefits of the subsidies mentioned in the previous question?
What effect do you think this policy has on American imports of foreign goods and American exports of products other than commercial aircraft? Explain.
What effect do you think this had on American imports of Japanese cars, Japanese imports of American cars, and American exports of goods and services other than
What is the likely impact of international trade restrictions on the following variables in the United States: employment, the unemployment rate and real GDP.
Until a few years ago, U.S. cars exported to Japan had the driver controls on the left side. What impact would this likely have on their sales in this country?
What effect do you think this had on Japanese imports of U.S. cars and U.S. exports of goods and services other than automobiles?
What will happen to the magnitude of the adverse effects of these limits as interest rates rise generally? Be explicit.
If government-imposed limits on interest rates are such a good idea, why not just make it illegal to charge any interest on all loans?
Why would a limit on interest rates on old credit card balances reduce the incentive of firms to issue new cards?
How might a look at these comments help you identify individuals and businesses who are likely to gain or lose as a result of the regulations?
What do controls on interest rates do to the incentive of consumers to lie on their credit applications in an effort to qualify for a credit card?
Why do you suppose the government regulates interest rates on consumer credit (as with credit cards) but generally does not do so with commercial credit?
How would the chance of a major economic depression change if federal deposit insurance were eliminated?
Currently, most U.S. residents cannot buy health care insurance coverage from a company based in another state. Who benefits from this situation? Who loses?
Who benefits from this current general rule? When health care reform legislation abolishes this rule, who will be hurt?