If Nations Erect Tariffs and Quotas to Restrict Trade, What

question 138

Multiple Choice

If nations erect tariffs and quotas to restrict trade, what is likely to happen to predicted values of currencies drawn from the purchasing power parity theory?

• A)They will be understated for tariffs and overstated for quotas.
• B)They will be overstated for tariffs and understated for quotas.
• C)They will be the correct values.
• D)They will be incorrect.

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Definitions:

Global Warming

Increasing global atmospheric and oceanic temperatures as measured or inferred from some point in the past to the present.

Lithosphere

The rigid outer layer of the earth, including the crust and upper mantle, which is divided into tectonic plates.

Biosphere

The global sum of all ecosystems, including all living organisms and their relationships to each other and to their environments.

Groundwater

Water that occurs in the pores, fractures, and cavities in the subsurface.