Which of the Following Helps Explain How the Protective Stimulus

question 55

Multiple Choice

Which of the following helps explain how the protective stimulus of a trade tariff can be diminished?

• A) Any increase in net exports drives both GDP and interest rates higher and thus causes domestic currency to appreciate and reduce the price increase associated with the tariff.
• B) Exporters from abroad try to stabilize the international prices of their goods, even in the face of a tariff.
• C) Smaller than expected increases in import prices undermine the anticipated reduction in total imports.
• D) All of the above are at least partial explanations.
• E) Only b and c apply, because an increase in net exports should make both GDP and the interest rate fall.

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Definitions:

MHC Class

Molecules on the surfaces of cells that help the immune system recognize foreign substances; they are categorized into class I and II, important for immune response.

Immune System

The immune system is a complex network of cells, tissues, and organs that work together to defend the body against infection and disease.

Lipoproteins

Molecules made of protein and fat that transport fats around the body in the extracellular fluid.

Plasma Membranes

A dual lipid layer enveloping the cell's cytoplasm, responsible for managing substance movement into and out of the cell.