Economists Who Criticize Trade Adjustment Assistance Argue That

question 326

Multiple Choice

Economists who criticize trade adjustment assistance argue that

• A) it only benefits a small fraction of all unemployed workers.
• B) money spent on the program overstimulates aggregate demand and threatens to cause inflation.
• C) benefits are too low to provide unemployed workers with a livable wage.
• D) it distorts patterns of foreign trade, reducing the gains from trade.

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Definitions:

Contractionary Policy

Economic policies intended to reduce spending and slow down inflation, often through increased interest rates or reduced government spending.

Banking System

The network of institutions, including commercial banks, central banks, and other financial intermediaries, that provide banking services and facilitate financial transactions within an economy.

U.S. Government Securities

Financial instruments issued by the United States Department of the Treasury to fund federal government spending, including Treasury bonds, notes, and bills.

Bank's Assets

refer to the resources owned by a bank, including loans, investments, cash, and other valuables.