Most Economists View the United States' Experience with Trade as

question 1

Multiple Choice

Most economists view the United States' experience with trade as

• A)one from which no firm conclusions about the virtues of free trade can be reached,due to the relatively short history of international trade in the U.S.
• B)one from which no firm conclusions about the virtues of free trade can be reached,due to the lack of trade within the U.S.throughout most of the early history of the U.S.
• C)an ongoing experiment that confirms the virtues of free trade.
• D)an ongoing experiment that calls into serious question the notion that free trade enhances the economic well-being of a nation.

---

Definitions:

Nominal Rate

The stated or advertised interest rate on a loan or investment, not accounting for compounding or fees.

Effective Rate

The interest rate on a loan or financial product, adjusted for the effect of compounding over a specified period of time.

Semi-annually Compounded

A method of computing interest in which interest is added to the principal balance twice a year, resulting in compound growth.

Effective Rate

The actual rate of interest earned or paid on an investment or loan, taking into account compounding.