In 2002, the United States Placed Higher Tariffs on Imports

question 16

Multiple Choice

In 2002, the United States placed higher tariffs on imports of steel. According to the open-economy macroeconomic model this policy reduced imports

• A)into the United States and made U.S.net exports rise.
• B)into the United States and made the net supply of dollars in the foreign exchange market shift right.
• C)of steel into the United States, but reduced U.S.exports of other goods by an equal amount.
• D)of steel into the United States and increased U.S.exports of other goods by an equal amount.

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Definitions:

Stale-dated Cheques

Cheques that have not been cashed or deposited within a specified time, often six months, rendering them invalid.

Balance Per Books

The account balance according to the company's accounting records, not necessarily reflecting bank or third-party records.

Bank Reconciliation

A process that explains the difference between the bank balance shown in an organization's bank statement, as provided by the bank, and the corresponding amount shown in the organization's own accounting records at a particular point in time.

Outstanding Cheques

Checks that have been written and recorded in the payor's ledger but have not yet been cashed or cleared by the bank.